Article
Using professional income packages to secure an off‑the‑plan loan
How doctors, lawyers and other high‑income professionals can use complex income packages to safely secure off‑the‑plan property finance in Australia.
Key Takeaway
Doctors, lawyers and other high-income professionals can use complex income packages to secure off-the-plan finance, but only if those packages are translated into the stable income lenders recognise. Australian banks typically apply a 3% serviceability buffer and may discount bonuses or private practice income by 20–40%. By documenting each income stream, choosing lenders with professional policy, and stress-testing repayments to keep them under 30–35% of net income, buyers can commit to off-the-plan safely and negotiate stronger terms.
This topic is covered in full on Tailored Loans Sydney
How doctors, lawyers and other high‑income professionals can use complex income packages to safely secure off‑the‑plan property finance in Australia.
Read the full guide on tailoredloans.sydneyHigh‑income professionals like doctors and lawyers can use complex income packages to secure off‑the‑plan finance, but only if those packages are translated into the stable income banks recognise and stress‑tested against the risk of changes before settlement. The key is to simplify how your income looks to lenders, pick the right policy (including professional packages) and keep total repayments under roughly 30–35% of your after‑tax income under a 3% rate buffer.
1. How banks see doctors, lawyers and other professionals
Banks don’t just see your headline salary; they see a risk profile that can be either very attractive or very messy.
1.1 The good news
For established professionals, lenders usually like:
- High base salaries or drawings
- Strong employment history or practice stability
- Professional status (medical, legal, accounting, engineering, etc.)
This often unlocks:
- Higher loan‑to‑value ratios (LVRs) without LMI for select professions
- More flexible treatment of bonuses, profit share and private practice income
- Sharper pricing inside “professional packages”
For why specialist guidance matters, see /insights/doctors-lawyers-high-income-professionals-specialist-broker-benefits.
1.2 The red flags
Off‑the‑plan plus complex pay triggers extra scrutiny because:
- Your income can change between contract and settlement
- RBA and APRA expect lenders to stress‑test with ~3% serviceability buffers
- Variable or practice income may be shaded by 20–40%
If you rely on every dollar of variable income to qualify, you’re exposed if policy or your circumstances shift.
2. What counts as income on a professional package?
Lenders differ, but they tend to slice your package into stable vs variable components.
2.1 Typical treatment of professional income
| Income type | How banks usually treat it* | Risk for off‑the‑plan |
|---|---|---|
| Base salary / PAYG retainer | 80–100% counted, annualised | Low, if track record is stable |
| Overtime, call‑backs, penalties | Averaged over 6–24 months, often shaded by ~20% | Medium – needs clear history |
| Bonuses / commissions | Need 2 years history, 60–80% often used | Medium‑high – may fall before settlement |
| Private practice billings | Use after‑expense profit, 2 years tax returns | Medium – impacted by tax planning |
| Profit distributions / dividends | Often averaged over 2 years, after add‑backs | Medium – big swings reduce usable income |
| Fringe benefits / salary sacrifice | Sometimes added back, policy‑dependent | Low‑medium – documentation critical |
*Illustrative only; each lender’s policy is different.
To boost borrowing power, many professionals need to clean up how income is structured and documented. See /insights/alexandria-medical-legal-tech-structure-income-banks-say-yes for practical examples.
2.2 Professional packages and LVR
Some lenders offer:
- Higher LVRs (e.g. up to 90–95% with reduced or waived LMI) for specific professions
- More generous income treatment (e.g. higher percentage of bonuses)
Used well, this can:
- Reduce cash you need today
- Let you hold a larger post‑settlement buffer instead of maximising your deposit
Used badly, it can tempt you to over‑gear. An internal rule of thumb from our broader work with professionals: keep total home and investment repayments near 30–35% of net income under a 3% rate stress‑test, even if the bank offers more.
The strategy continues below
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