How much can I borrow on a mining roster? How lenders count base, overtime, penalties, allowances and bonuses

If you work a roster in the Bowen Basin, your payslip probably looks nothing like a nine-to-five salary. There's base pay, overtime, shift penalties, allowances and maybe a bonus. How much you can borrow comes down to how much of that a lender is willing to count. Lenders don't all count it the same way.

This guide explains how each part of roster income is usually treated, why two lenders can look at the same payslip and land on different numbers, and what to bring so your full income gets a fair look.

How lenders look at each part of your pay

Base pay

Your base hourly rate or salary is the simplest part. If you're permanent and past probation, most lenders will count all of it. A recent payslip and an employment contract or letter usually cover it.

Shift penalties and roster loadings

Night shift, weekend and public holiday penalties are often built into the roster itself. When they're paid every cycle because of the roster you work, many lenders treat them as regular income. Some lenders want to see them in your contract, or across several months of payslips, before they'll count them in full.

Overtime

Overtime is where lenders differ most. Some count it in full if it's regular and you've been in the role long enough to show a pattern. Others use only part of it, or want a longer track record before they count any. If overtime is a normal part of how your site runs, your year-to-date figures and last year's income help show that.

Allowances

Site, travel, meal, tool and remote area allowances are looked at case by case. An allowance that's paid every pay cycle and written into your contract is easier to count. One that covers a cost you actually spend, such as travel, may be counted in part or left out, depending on the lender.

Bonuses and incentives

Production and safety bonuses can be decent amounts. Because they can change from year to year, many lenders want a history before they count them, and some average them over two years. A one-off sign-on bonus usually isn't treated as ongoing income.

Why lenders land on different numbers

Each lender has its own credit policy. Two lenders can take the same payslips and come up with different assessable income because they treat overtime, allowances and bonuses differently. They also use their own living expense measures and their own buffers when they test whether you can afford the repayments.

Other things that move the number:

• How long you've been with your employer, and in the industry
• Whether you're permanent, on contract, casual or through labour hire
• Your existing debts, including car loans, personal loans and credit cards (lenders usually assess the full card limit, even if the balance is lower)
• Your dependants and your living costs
• The size of your deposit

That's why a quick online calculator can give you a figure that's well off the mark for roster income. A calculator assumes one income number. It can't tell which parts of your pay a given lender will count.

An illustrative example

Illustrative only. These are round numbers chosen to show the method. They're not based on a real client or on any particular lender's policy.

Say your yearly income is made up like this:

• Base pay: $100,000
• Shift penalties paid every roster cycle: $20,000
• Overtime: $30,000
• Allowances: $10,000
• Annual bonus: $10,000

That's $170,000 on paper. Here's how three different approaches might treat it:

1. Approach A counts base, penalties, all overtime, allowances and the bonus: $170,000.
2. Approach B counts base, penalties and allowances, half the overtime, and leaves the bonus out until there's a longer history: $145,000.
3. Approach C counts base and penalties only, because you've only just started in the role: $120,000.

That's a $50,000 gap in counted income from the same payslips. The difference in borrowing power that follows can be large. Matching your income to a lender's policy matters as much as the income itself.

What to bring

• Your two most recent payslips, showing year-to-date figures
• Your employment contract, or a letter from your employer confirming your role, start date, roster and employment type
• Your last two years of tax returns or income statements
• Your roster pattern, for example 7 on 7 off or 4 on 4 off
• Evidence of past bonuses, such as the payslip or letter that shows them
• Statements for your savings, other loans and credit cards
• If you've changed employers recently, details of your previous role and how long you've worked in the industry

Bring the lot to the first meeting. It's quicker to work out what a lender will count when everything's on the table.

A few tips if you're planning ahead

• If you can, keep your overtime steady in the months before you apply. A consistent pattern is easier to rely on than one big month.
• Check your credit card limits. Lowering a limit you don't use may help your borrowing power.
• Get a conditional pre-approval before you start making offers, so you know your number.
• If you salary package or claim work deductions, your accountant can advise on the tax side. We focus on what lenders will count.

We work with roster income from Mackay, Moranbah, Dysart and right across the Bowen Basin. See our mining and FIFO home loans page for more, or our first home buyers page if this is your first purchase.

Talk it through

Send through your last two payslips and we'll explain how different lenders may treat your income. Call or text 0458 773 002, or book a free assessment. For most home loans there's no broker fee; any fee is disclosed upfront in our Credit Guide.

Common questions

This guide is general information only and doesn't take into account your objectives, financial situation or needs. Talk to us about your circumstances before acting on it. Related: Mining & FIFO loans.