Will my overtime increase borrowing capacity?

Hi all, first time poster here with what is hopefully a simple question.

In the past few years my partner and I have purchased two properties with BankSA (Westpac) and my overtime (weekend penalty shifts) has been largely ignored when determining borrowing capacity. I'm now investigating the possibility of a second IP and was wondering if smaller lenders (obtained via a mortgage broker) might take this income into account?

I have an opportunity to 'roster' myself onto weekend shifts for the coming 12 months but as we have a toddler I don't want to sacrifice all that time without a substantial payoff. The new property is at least 8 months away so it feels a little early to engage a broker. Cheers.

 

Yes it's possible, some lenders will consider overtime if it's shown to be consistent

 

Definitely helps. Many lenders will use 80% of the income.

The challenge with variable income is it can be difficult to prove. If an application works without using it, we don't worry about it.

 

Appreciate the replies. Cheers.

 

Hi Rolf

Yeah, we should be fine. Although we are low income my partner has a self employment income that we never factor in because of the messing around, and I have family that would jump in to help if need be. Also we'll likely purchase a high yield 70's unit in suburban Adelaide, aiming for $190K @ $250 week rent, that really shouldn't have us digging into our pockets much. And we're great savers.

 

Some lenders will take your current payslip and annualise, subtract base and presto thats your OT. Others will require last years group and then take the lower figure. So best to sit down with a broker to see which lenders will accommodate you the best.

 

No matter what the payoff is you can't redeem the time spent away from your "Toddler".

Think Again! Life isn't just about money!

 

But you only need to work for 2 years to get your loans, that will then allow you to spend much more time with your family over the decades.

 

I don’t know about what lender does what but I think some lenders may only consider OT if it can be demonstrated in the previous financial year also. So if you have only started doing OT in the current year, the may not consider it. The big banks like ANZ, CBA might differ on that. Maybe one of the brokers here can confirm the norms.