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I'm a Miner, I'm on good money, can I get a homeloan in NSW

By Richard Harper

Big Pay Packet, Small Borrowing Power? Why High Income Earners Like Miners Often Get Caught Out

Earning big doesn't automatically mean you can borrow big. Lenders look at what's guaranteed and likely to continue, not just your bank account. For miners and FIFO workers earning overtime, penalty rates, LAHA and bonuses, much of that income gets discounted or capped when borrowing power is calculated.

Why This Matters to Me

I've been on both sides of this one. Before I became a mortgage broker, I worked as a coal miner and a hard rock miner, earning strong money through a mix of base pay, overtime, penalty rates, shift allowances and LAHA. Like a lot of people in the industry, I assumed that income would speak for itself when it came time to borrow.

It didn't quite work that way. A lender doesn't just look at what's landing in your account each pay cycle. They look at what's guaranteed and how much of your income they're actually able to count. A decent chunk of what I was earning got discounted or excluded altogether, and my borrowing power ended up looking very different to what my payslip suggested it should.

That experience is a big part of why I do what I do now. I know what it's like to sit across from a lender and hear that income which is genuinely paying your bills isn't valued the way you expected. These days, when I sit down with high income earners, miners and FIFO workers among them, I walk them through exactly how their income will be treated before they get their heart set on a property.

How Do Lenders Actually Assess Overtime and Penalty Rates?

Most lenders will consider overtime and penalty rates as part of your income, but rarely at full value.

  • Lenders typically want a consistent history, usually at least six to twelve months, showing the overtime or penalty rates are ongoing rather than a one-off.

  • Even with a solid history, many lenders apply a discount, sometimes accepting only 50 to 80 percent of that income, because it isn't guaranteed to continue.

  • Some industries are treated more generously than others. Roles like nursing, policing and mining, where overtime and shift work are standard, can sometimes see a higher percentage counted by the right lender.

  • The lender wants reassurance that if your overtime dropped off tomorrow, you could still comfortably meet your repayments.

This is exactly the kind of detail that varies significantly from one lender to the next, which is why the same income can produce very different borrowing outcomes depending on where you apply.

What About Bonuses?

Bonus income tends to be treated even more cautiously than overtime.

  • Lenders generally want at least one, and often two, full years of bonus payments before they'll consider including it.

  • Because bonuses can be discretionary and tied to company performance, many lenders apply a discount here too, reflecting the same cautious approach used for overtime.

  • A one-off or irregular bonus is unlikely to be included at all.

  • If your bonus makes up a significant part of your total income, it's worth clarifying how that will actually be treated before you set your budget around it.

Does LAHA (Living Away From Home Allowance) Count as Income?

This is one of the most misunderstood parts of income assessment for mining and resources workers, and it catches a lot of people out.

  • LAHA is generally paid to compensate you for the cost of living away from your usual home for work, and under ATO rules it's treated as a fringe benefit rather than standard taxable income.

  • Because it doesn't appear as assessable income on your tax return the same way your salary does, many lenders either exclude it entirely or treat it with significant caution.

  • Some lenders will consider LAHA if it's clearly ongoing and well documented, but it's far from guaranteed, and shouldn't be assumed to simply add straight onto your income for borrowing purposes.

  • If your role changes, your site changes, or the allowance structure changes, that income can stop, and lenders know this.

If a meaningful part of your take home pay comes from LAHA, this is genuinely one of the first things worth clarifying with a broker before you start looking at properties.

Why Does This Catch High Income Earners Out More Than Most?

It comes down to structure, not size.

  • A salaried employee on a flat $150,000 base salary is often assessed more simply than someone earning the same total income through a mix of base pay, overtime, penalty rates, allowances and bonuses.

  • The more variable components in your income, the more discounting and documentation is involved, and the more the assessable figure can differ from what you actually earn.

  • High income earners with complex pay structures sometimes assume their strong income will smooth over any complexity. In practice, complexity is exactly what triggers closer scrutiny.

  • This isn't about being treated unfairly. It reflects responsible lending obligations lenders are required to follow, ensuring you're never assessed on income that might not continue.

What Can You Actually Do About It?

  • Get a proper home loan assessment early. Don't estimate your borrowing power based on gross annual income. Have it assessed against how a lender will actually treat each component of your pay.

  • Keep clean documentation. Payslips, group certificates and employment contracts that clearly show the breakdown of base pay, overtime, penalty rates, allowances and bonuses make a real difference.

  • Understand that lenders differ. Every lender applies its own approach to overtime, bonuses and allowances, so the right lender for your situation might not be the first one you'd think to ask.

  • Don't assume LAHA will be counted. Budget conservatively around your base and consistent income, and treat allowance income as a bonus to your capacity rather than the foundation of it.

FAQs

Will my mining income always be treated the same across every lender?

No. This is one of the areas where lenders vary most. Some are genuinely more comfortable with FIFO and resources sector income than others.

If I've had overtime and LAHA for years, does that guarantee it will be counted?

Not automatically. A long history helps, but it still needs to meet each lender's documentation and consistency requirements.

Should I wait until I have a longer income history before applying?

Not necessarily. It's more important to understand how your current income will be assessed now, so you know what's realistic rather than guessing.

Is this an issue only for FIFO and mining workers?

No, though it's especially common in that industry. Anyone with a significant portion of overtime, shift allowances, commissions or bonus income can run into the same situation.

A Final Thought

None of this means your income isn't valued or that homeownership is out of reach. It simply means the number on your payslip and the number a lender will use to assess you aren't always the same thing, and that gap can catch even high income earners off guard. I know, because it caught me off guard too.

I'd rather walk you through exactly how your income will be treated before you fall in love with a property, than have you find that out partway through an application the way I did.

Ready to Find Out What Your Income Really Supports?

If you're earning strong money through overtime, penalty rates, allowances or bonuses and want to know what that actually translates to in borrowing power, get in touch and we'll work through it together properly, no guesswork involved.

Already own a property and want to see if refinancing could work better for your income structure? That's a conversation worth having too.

About the Author

Richard Harper is the founder of Harper Mortgage Brokers, operating under Purple Circle Financial Services. He's built his practice on honesty, trust and transparency, and clients know him as understanding, compassionate, reliable and straight with them. Service the way it should be.

This article is general information only and doesn't take into account your personal financial situation, needs or objectives. It isn't personal or financial advice and shouldn't be relied on as a substitute for professional guidance specific to your circumstances. Lending criteria, government schemes and eligibility rules can change, so figures and details should always be confirmed before you rely on them. Harper Mortgage Brokers operates under Purple Circle Financial Services, Credit Representative Number 573723.

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