Hello!
I want to buy a house worth $620,000 and need a home loan to make it happen. My friends were telling me that banks ask for payslips as a proof of income. I work for my family and don't receive payslips. Although I do have a legitimate income, I don’t know how I can get a loan without payslips.
Why are payslips so important? Isn’t there another way I can prove my income?
Is there another way to prove my income besides payslips?
- Otto Dargan
- Mortgage Specialist
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- Location: Sydney, Australia
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Re: Is there another way to prove my income besides payslips
Hi and welcome to the forums gleeson,
It is common to not receive any payslips from your employer especially if you work for your family. Most lenders ask for payslips as a proof of income because it provides essential information that the lenders need to take into consideration. They will see you as a higher risk if you cannot provide payslips.
The following are some of the reasons why lenders see payslip as a vital document:
Cheers,
Otto
It is common to not receive any payslips from your employer especially if you work for your family. Most lenders ask for payslips as a proof of income because it provides essential information that the lenders need to take into consideration. They will see you as a higher risk if you cannot provide payslips.
The following are some of the reasons why lenders see payslip as a vital document:
- Payslips are the most reliable form of verifying someone’s income.
- The lenders can see the breakdown of normal, overtime, bonuses and commission income.
- The lenders can use your Year to Date (YTD) income to calculate if your current income has been consistent throughout the financial year.
- The lenders can see expenses such as tax, HECs, HELP and any debts you are paying direct from your pay such as salary packaging expenses.
- The lenders can see whether someone is employed as a permanent or casual employee.
- Employment letter.
- Group certificate for the most recent year.
- Tax return.
- Bank statements for the last three months which shows regular payments into your account (payments must be very consistent).
Cheers,
Otto
Re: Is there another way to prove my income besides payslips
I’m sure getting the employment letter will not be that difficult. If I do provide the alternative form of income evidence, how much will I be able to borrow?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Is there another way to prove my income besides payslips
Hi gleeson,
The amount of money you can borrow may depend on your situation and the type of income verification you can provide such as:
If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
The amount of money you can borrow may depend on your situation and the type of income verification you can provide such as:
- Employment letter only: 80% of the property value i.e. 80% LVR.
- Group certificate only: 80% LVR.
- Tax return only: 80% LVR.
- Notice of assessment only: 80% LVR.
- Salary credits only: 90% LVR and up to 95% LVR for strong applicants.
- Employment letter and a group certificate or tax return or notice of assessment: 90% LVR and up to 95% LVR for strong applicants.
If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.
Cheers,
Otto
Re: Is there another way to prove my income besides payslips
Hmm…doesn’t sound so bad. Thanks for your help!
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- Posts: 47
- Joined: Thu Jun 27, 2013 9:19 pm
Re: Is there another way to prove my income besides payslips
Hi there guys, I am also about to apply for a home loan. Luckily, I do have payslips to prove my income. But I’m not sure what kind of things banks look for in a payslip. Do banks look for particular info?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Is there another way to prove my income besides payslips
Hi sandysmith,
Lenders will require your payslips to meet specific requirements. The following are the standard requirements:
Cheers,
Otto
Lenders will require your payslips to meet specific requirements. The following are the standard requirements:
- It must be dated less than four weeks from the date of application. Old payslips may not be accepted.
- It should include the employee’s name, year to date income, pay period details and the employer’s ABN / ACN number.
- It must be computer generated using an accounting system. Handwritten pay advices or pay envelopes are not acceptable on their own.
- All deductions should be explained.
Cheers,
Otto
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- Posts: 47
- Joined: Thu Jun 27, 2013 9:19 pm
Re: Is there another way to prove my income besides payslips
Thanks for sharing this info. I will call you in a week or so to discuss my loan application with you.