A borrowing-range calculator asks you to type an income. A bank asks you to prove it. Those are not the same number. Lenders discount, average, or ignore parts of a package that a planning tool treats as given, and they want documents that match the story on the application. Understanding the evidence list saves you from treating the top of a range as a quote.
PAYE employees: payslips plus a letter
The usual pack is the last two or three months of payslips, a recent IRD income summary or end-of-year summary, and an employment letter that states role, start date, salary, hours and whether the role is permanent. Banks look for consistency: the salary on the letter should match the payslips, which should match what you typed on the application. A brand-new job can still be usable, but some lenders want you off probation or want the previous role as well. Casual or variable hours are often averaged over a run of payslips rather than taken from the best fortnight.
What they do with overtime, allowances and bonuses
Regular overtime and shift allowances may be counted if the history shows they are normal, not a one-off busy season. Bonuses are often averaged over two years and then discounted — half of a genuine annual bonus is a common treatment, and a one-off retention payment may count for nothing. Commission-heavy roles get the same scepticism: a lender wants a pattern, not a single good year. If a large slice of your package is variable, enter a conservative income in the borrowing tool or you will plan around a figure the credit team will cut.
Parental leave, returning to work, and future pay rises
Income you will earn after a return from parental leave is not always counted at the full future salary today. Some lenders want you back at work, or will use the lower of the two figures, or will need a confirmed return date and hours. A promised promotion that has not been confirmed in writing is usually ignored. Do not let a calculator's “what if I earned X” become the number you tell a broker as fact.
Contractors and self-employed applicants
Two years of financial statements and tax returns is the standard starting point, sometimes three. A single strong year after a quiet one will be averaged, not celebrated. GST returns, invoices and a letter from your accountant help, but they do not replace the tax returns. Contractor rates that look like a large PAYE salary on a calculator will be haircut for business expenses, tax not yet paid, and income volatility. If that is you, treat the borrowing range as a conversation starter with an adviser who has placed similar files, not as a ceiling you can bid to.
How this sits next to the FinLab range
The borrowing tool applies published DTI and serviceability logic to the income you enter. It does not verify that income, does not apply a particular bank's bonus policy, and is not an approval. Use it to see whether a price band is even in range before you shop. Use payslips and, if the file is messy, a licensed adviser to see what a named lender will actually count. When the two disagree, the lender's treatment of proven income is the one that matters.