What income do banks accept?
Find out which types of income count and how they are calculated.
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Every mortgage is built on regular, verifiable income. Banks assess different types of income differently, though, and their conditions vary.
Employment income
Permanent employment is the simplest for banks to assess. They usually require you to have completed your probation period and verify your net income from an employer’s confirmation or bank statements. For fixed-term contracts, banks may apply stricter conditions.
Self-employment income
For sole traders and company owners, a bank may use profit or a percentage of revenue. There is no universal formula across banks. For example, Slovenská sporiteľňa publishes acceptance of up to 60% of revenue for sole traders using flat-rate expenses, subject to assessment. A completed-period tax return or financial statements may be required. A personal mortgage using business income is different from a business loan taken out by a company.
Rental income
Banks usually accept rental income if it appears in your tax return or is backed by a tenancy agreement and regular payments into your account.
Parental benefits and pensions
Banks routinely accept pensions. Only some banks consider maternity and parental benefits, often together with a partner’s income or only in part.
Income from abroad
Income from abroad can be used too, but banks ask for more documents, such as an employment contract, payslips and bank statements. Conditions depend on the country and the currency you’re paid in.
If you combine several types of income, it pays to compare offers from multiple banks – a difference in recognised income can mean tens of thousands of euros in the loan amount.
Confirm eligibility for your particular income with the bank; the calculator does not establish its acceptance.
Sources
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We checked these figures against the listed sources on the verification date. Bank terms and regulations change, so confirm them with the bank before you decide.