Bonus Incoming? How Your December Pay Rise Can Work Smarter for Your Home Loan.

December is when many large firms in Sydney (and indeed, all around Australia) award bonuses and pay rises. For corporate professionals, that usually means a healthy bump hitting the account just before the holidays.

Somewhere between the bonus announcement and the beach, there’s a moment to make smart decisions.

Your December pay rise might just open more doors than you think.

While it’s tempting to think about travel or upgrades (been there!) - it’s also a good time to think strategically. That extra income can improve your options when it comes to refinancing, renovating, or planning your next move.

Why this bonus window matters

A higher salary or confirmed bonus changes how lenders view your application. More income can open the door to better rates, larger facilities, or the ability to fund a renovation or investment purchase.

The key is timing. If you’re expecting a bonus or pay rise soon, start preparing now so you’re ready to act when it lands.

What banks look for

• They’ll assess your new base salary and any bonus or commission income.

• Some lenders want to see a consistent pattern of variable income before they count all of it.

• Even if the bonus hasn’t yet been paid, having documentation - such as a new contract or written confirmation - can strengthen your position.

• Debts and living expenses are still part of the equation, so an income increase works best when paired with tidy finances.

  
  

How to use the extra income

1. Refinance or restructure

   Use your higher income to revisit your current loan. You might improve your rate or shorten your term, freeing up cash flow or building equity faster.

2. Renovate or upgrade

   If your home needs a refresh or you’re planning an extension, this could be your moment. With higher serviceability, you may be able to borrow more to get the work done.

3. Investment property

   For senior professionals, the combination of strong income and stable employment makes it easier to consider building a portfolio.

   
   

What to do now

• Ask HR or payroll for written confirmation of your upcoming pay rise or bonus.

• Review your current loan setup.

• Speak with your broker about what documentation will help once the new income hits.

• Be proactive - lender turnaround times are longer over Christmas and new year.

  
  

That end-of-year bump is more than a reward for a hard year’s work - it’s an opportunity to reshape your financial footing for the year ahead. Start the conversation now and be ready to make your next move when the bonus drops.