No payslips home loan

Why do banks ask for payslips?

no payslipsAlmost all banks require payslips in order to assess a loan for approval. This is because payslips provide essential information that the lenders have to take into consideration. It is fairly obvious that if a bank doesn’t get payslips then the loan is at a much higher risk for them. The most important reasons why banks believe that payslips are vital documents are:

  • Payslips are the most reliable form of verifying someone’s income.
  • The lenders are able to see a breakdown of normal, overtime, bonuses and commission income
  • The lenders are able to use your Year to Date (YTD) Income to calculate if your current income has been consistent throughout the financial year.
  • The lenders are able to see expenses such as tax, HECS, HELP, and any debts you are paying direct from your pay or salary packaging expenses.
  • The lenders can see whether someone is employed as a permanent or casual employee.

What if you don’t have payslips?

It is not uncommon in today’s society to not receive any payslips from your employer. However this all depends on the type of industry or corporation you work for. For example many small businesses do not issue payslips to their employees, especially if payments are cash-in-hand. It could also be the case that payslips are issued however they are hand written which means that the banks will not accept them as proof of your income.

In other cases some people receive income on an irregular basis that is very difficult to prove. This usually includes salesmen, casual employees and people who work significant overtime.

How can I prove my income?

There are several ways of verifying your income as very few lenders will accept a loan that is not backed up by current payslips. Please enquire online and one of our mortgage brokers can assist you to find a lender to suit your situation. Some alternative ways to verify your income are to provide a:

  • Letter from your employer (no other documents are required)
  • OR Group certificate for the most recent year (no other documents required)
  • OR Tax return (no other documents required)
  • OR Bank statements for the last 3 months which shows regular payments into your account (no other documents required, payments must be very consistent)

All of the above can be used in lieu of payslips, however these are only acceptable to a few selected lenders so please enquire online if you would like to find out more information from one of our Mortgage Brokers.

How much can I borrow?

The amount of money you can borrow would depend on your situation and the type of income verification you can provide.

  • Employment letter only: 80% of the property value
  • Group certificate only: 80% of the property value
  • Tax return only: 80% of the property value
  • Notice of assessment only: 80% of the property value
  • Salary credits only: 90% of the property value and up to 95% for strong applicants
  • Employment letter AND a group certificate OR tax return OR notice of assessment: 90% of the property value and up to 95% for strong applicants
  • No evidence available: 60% of the property value

Will I pay a higher interest rate?

No! Generally as long as you can provide some form of verification of your income then you can still get an excellent discount on your interest rate just like most other borrowers. The secret is to choose a lender whose employment verification requirements matches what you are able to provide. Please enquire online to discuss your options with one of our Mortgage Brokers

What if I can’t provide any income evidence at all?

If you cannot even provide a letter from your employer then we can only lend you up to 60% of the property value as a PAYG Low Doc Loan. You would sign a declaration which states your income and the bank will accept this as evidence of your income. Unfortunately there are no other options available and this option is not available from many lenders because Low Doc Home Loans are supposed to be for self employed borrowers.

What if I don’t have a job?

Under no circumstances will we help you get a loan if you cannot prove that you can afford to repay it. We believe in ethical lending and will not help you lie to a bank. If you are not actually employed then do not contact us. We do our own employment verification via phone on all customers to identify people that are acting dishonestly.

If you are found to be dishonest then your loan will immediately be declined. We are more than happy to help people who are in a good financial position and who are legitimately employed however have a difficult time proving their income.

Apply for a home loan with no payslips

We are specialists in lending to people that have difficulty proving their income. Unlike other mortgage brokers we can quickly work out which lender is the most suitable for your situation. Please enquire online to seek the right professional advice from our staff.