1. What is “income annualisation” in the context of home loans?

Income annualisation refers to a process for assessing the borrowing capacity of people with irregular or seasonal incomes when it comes to home loans

Income annualisation helps lenders assess a borrower’s average or typical income based on historical financial data, providing a more accurate picture of their repayment capacity when earnings fluctuate. This process is useful for people with varying income, or those who earn through commissions and/or bonuses and allowances. 

2. Why do lenders need to annualise income?

Lenders annualise income for home loans to accurately assess a borrower’s ability to repay the loan, especially for people with inconsistent income throughout the year. Through income annualisation, lenders will not just look at a single month’s pay, providing an individual’s true earning potential.

3. Do all lenders accept annualised income the same way?

Lenders implement different policies to assess annualised income. Some are flexible, accepting a wider range of income sources which can greatly help people who have inconsistent income throughout the year. Meanwhile, some lenders have stricter guidelines and may ask for specific documents and income levels for loan applications.

Also, a lender’s risk tolerance can directly affect income annualisation applications. Those with higher risk tolerance may be willing to consider individuals with less predictable income sources. Our experienced mortgage brokers will advise you on what lenders suit your financial situation best.

4. How does annualising income impact my borrowing capacity?

Income annualisation can significantly affect your borrowing capacity for a home loan. An annualised income higher than your income in a single low-earning period leads to a higher borrowing capacity as lenders are confident you can repay the loan based on your overall earning potential.

Lower annualising income due to past income fluctuations or periods of low earnings can lead to lower borrowing capacity. Therefore, the impact of annualised income on your borrowing capacity depends on how the lender assesses your income and risk. 

Lenders typically do not need to annualise your income if you have consistent income over time. However, consistency generally results in higher borrowing capacity compared to income, which fluctuates significantly. Make sure your supporting documents are updated and complete to greatly influence the lender’s assessment.

Success

Your success 
is our success

We understand everyone’s circumstances are different and we take the time to understand you and your goals. We value forming lifelong relationships with all our clients and we are fully committed to adding value every step of the way.
 
We know that mortgages can sometimes be complex and hard to understand. We focus on simplifying the process for you and we treat your loan as if it were our very own. Let us do what we do best so there’s one less thing for you to worry about.

Join thousands of satisfied customers

Posted on Google Google
Royston Cheong profile picture
Royston Cheong
17 August 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
We cannot be any happier with the service we received from Calvin and his team on our property loan. Its been a long journey given the competitive market and even so, Calvin had been professional, responsive and genuinely going above and beyond to make the whole loan process as smooth and stress free as possible. What really stood out was Calvin always made sure our best interests were at the heart of every decision rather than simply focusing on getting a loan. They took the time to understand our circumstances and helped us choose the right loan structure. Will definitely use them again and highly recommend them to anyone looking for reliable and trust worthy mortgage broker. Thank you Calvin, Shellane, Catherine and the rest of the Zenith team for getting our property loan across the line.
Posted on Google Google
Paul profile picture
Paul
27 July 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Leon is an excellent mortgage broker - knowledgeable, forward-thinking and a great communicator throughout the entire process. Highly recommend!
Posted on Google Google
Luke Vassallo profile picture
Luke Vassallo
15 July 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Absolutely Floorless - Totally Recommend
Posted on Google Google
Andre profile picture
Andre
30 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Leon and the team has been amazing to work with and has supported me well throughout my entire journey in purchasing my first home. He was always available to answer any questions or confusions I had, and was extremely fast in getting all the paperwork and processes done. Though they're the only broker I've used, I can confidently say they're one of the bests. Thank you for making the entire process so stress free for me.
Posted on Google Google
Jasmine John profile picture
Jasmine John
29 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
⭐⭐⭐⭐⭐ We had an outstanding experience with the entire team throughout our home loan refinance. A special thank you to Leon Ng, our mortgage broker, whose professionalism, knowledge, dedication, and excellent communication made the entire process smooth and stress-free. Leon went above and beyond to ensure we achieved the best outcome, and we are truly grateful for all his hard work and support. Thank you also to John Quillan, our settlement agent, for handling the settlement efficiently and keeping everything on track, and to Jeam Lisondra, our lending assistant, for being so helpful, responsive, and organised throughout the process. The teamwork, attention to detail, and exceptional customer service from everyone made what could have been a stressful experience feel easy and seamless. We highly recommend this wonderful team to anyone looking for honest, reliable, and professional home loan assistance. Thank you all for your outstanding service!
Posted on Google Google
Adarsh Kumar profile picture
Adarsh Kumar
26 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
10/10 Leon, Jane, Shellane and the rest of the Zenith team helped us purchase our first block of land and are currently helping us build our home. Cannot recommend these guys enough!!
Posted on Google Google
brittany pearse profile picture
brittany pearse
17 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Calvin was incredibly helpful throughout the entire process, correspondence was prompt, consistent and always well informed. Calvin's help removed a great deal of stress, making our property purchase a seamless process.
Posted on Google Google
RK profile picture
RK
10 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Leon and his team from Zenith Home Loans was fantastic to deal with. He helped me refinance my loans smoothly and made the whole process simple and stress-free. There were a few hiccups with the bank along the way, but Leon sorted everything out quickly and kept me updated throughout. I really appreciated his professionalism, clear communication, and dedication. Highly recommend Leon and Zenith Home Loans to anyone looking to refinance.
Posted on Google Google
Mary Lau profile picture
Mary Lau
4 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Leon and Shellane were extraordinarily helpful, quick to business, and happy to explain everything to me as a first home buyer. Cannot recommend them and Zenith more.
Posted on Google Google
Wing Tung Tsoi profile picture
Wing Tung Tsoi
1 June 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Working with Leon as a first home buyer was a fantastic experience. He is incredibly knowledgeable and explains everything so clearly. I had a lot of questions throughout the process, but Leon and his team were always highly responsive and very patient with me. Thank you for making this milestone so smooth and stress-free!
Posted on Google Google
Sa Yi Fu profile picture
Sa Yi Fu
27 May 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Highly recommend Calvin and John at Zenith Home Loans. They guided us through a tricky application and made sure we settled on time. Great communication and support throughout. Five stars.
Posted on Google Google
Khaled Ahmed profile picture
Khaled Ahmed
27 May 2026
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
Calvin and John made our property purchase happen. Calvin handled the complex loan with multiple guarantors, and John kept the settlement on track. Outstanding team – responsive, professional, and got the job done.
Verified by Trustindex
Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more

Have an obligation-free chat
with one of our experts