Does cash income count for a home loan?

Not if it isn't on paper. A bank needs payslips, income statements or tax returns to verify income, so cash on the side that doesn't appear on any of them can't be used.

Does overtime count for a home loan?

Generally, yes, if it's on your payslip and regular. Many lenders use around 80% of it, and some use all of it for essential workers or where overtime is a condition of employment.

How long do I need to have been doing overtime?

It depends on the lender, generally somewhere between three and twelve months of regular overtime.

Will moving my overtime onto my payslip help me borrow more?

Usually, once there's enough history for the bank to rely on it. Check first whether you actually need it counted for the loan you're after.

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Straight Answers · First home

Does getting my extra hours as overtime on my payslip help more than getting paid cash on the side?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read

The short answer

Of course it does. If your overtime is on your payslip, it's income a bank can see and verify. If it's cash, as far as the bank is concerned, that money kind of doesn't exist.

So the banks aren't going to use cash in hand when they're working out how much you can borrow. Overtime that runs through payroll, with a bit of history behind it, generally can be counted.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

Why the bank only counts what it can verify

When a bank works out your borrowing power, every dollar of income has to be backed by something: payslips, an income statement, a tax return. That's how it knows the money is real and likely to keep coming.

Cash on the side doesn't show up in any of those. There's no payslip and no record, so there's nothing for the bank to verify. It can't use it, and I can't put it on an application. From the bank's point of view, your income is what's on paper.

How payslip overtime is generally counted

Overtime on a payslip is a different story, but it isn't always counted dollar for dollar. Most lenders want to see it's regular, generally with somewhere between three and twelve months of history depending on the bank.

Many lenders then shade it, commonly using around 80% of your overtime rather than all of it. Essential workers, and people whose overtime is a condition of their job, can often get 100% counted at a number of lenders. Some lenders count overtime in full for anyone with enough history, which is where shopping the panel matters.

The honest bit: know your numbers first

Before anything changes with how you're paid, work out whether you actually need that overtime counted to get where you want to go. Your base pay might already carry the loan you're after.

If it doesn't, the overtime needs to be on your payslips for a while before it helps, so the earlier that history starts, the better.

Want to know if your overtime will get you there?

A 30 minute call. We go through your payslips, how much of your overtime a bank is likely to use, and what you can borrow with and without it.

Book a 30 minute call Call 0437 189 939

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Next question

Does the bank count my overtime, my side hustle income or a second job?

Yes, on conditions. Overtime is generally shaved 20%, a second job wants six to 12 months, and side hustle income only counts through an ABN.