Payslips provide essential information to the banks about your current income situation, one of the key determiners of whether your home loan application is approved or not.

Use the following guide to ensure that your payslips are acceptable to the bank and what you can do if they don’t meet standard requirements.


What an acceptable payslip looks like

For your home loan application to be processed, you must provide at least two consecutive payslips.

Below are the standard requirements that payslips must meet before they will be accepted by a lender:

  • Must be dated less than four weeks from the date of application (old payslips are not accepted).
  • Must show the date range that you’re being paid for as well as your pay day.
  • Must include your name as the employee, your YTD income, the name of your employer and your employer’s Australian Business Number (ABN) and/or Australian Company Number (ACN).
  • Must show your taxable income and net income
  • All deductions are explained including tax, high education debt (HECS-HELP), superannuation contributions and any debts you’re paying direct from your pay such as salary packaging expenses.

Some payslips won’t show annual leave, personal leave and long service leave even though you work full time or part-time. In cases like this, some lenders may require an employment letter confirming that you are in fact employed full time and/or an ATO notice to confirm that you’ve paid tax on the income you’ve earned.

Does your payslip look something like this?

If not, please call us on 1300 889 743 or fill in our free assessment form. One of our mortgage brokers can tell you whether or not you need to provide further income evidence.


Why do banks ask for payslips?

Banks ask for two consecutive payslips so they can use the Year to Date (YTD) income to calculate if your current income has been consistent throughout the financial year.

The payslip will also show your employment status (whether you’re full time PAYG, contract, casual or part-time) as well as a breakdown of your normal, overtime, bonus and commission pay.


Handwritten payslips are not acceptable

Some employers, particularly if you work in a family business, will provide you with handwritten payslips.

Payslips in this form are not acceptable to lenders on their own and must be computer generated using an accounting system. That means payslips produced in as a word document or in a spreadsheet are not acceptable either.

You’ll be surprised how often we come across payslips that are poorly typed with spelling errors, different font or show non-existent dates like 31 April!

MYOB or payslips produced from small business accounting software are treated with caution.


Online payslips can be a problem

A lot of businesses and government departments have set up online human resources (HR) portals in which employees download their payslips rather than being emailed one.

In many cases, your pay details will be split-up into different tabs online so important details like YTD and leave entitlements may not be shown all in the one print off.

In some cases, you will need to ask your employer for a hard copy of your payslip that shows all of the necessary pay details on the one page and/or an employer letter confirming your pay.

Sometimes, employers have different systems or a transitioning over to a new payslip system which means the payslips you provide to the bank look completely different to one another.

It could be that you have the hard copy payslip from your last month’s pay but your most recent payslip hasn’t been sent to you yet so you print it off the HR portal. As long as the payslip details match up, it shouldn’t be an issue with most banks.


What if you can’t provide a payslip?

It is common not to receive payslips from your employer, particularly if you work for a small business in which you are paid cash-in-hand.

You may in fact receive payslips but because they are handwritten they will not meet application requirements.

Some alternative ways to verify your income are to provide at least one of the following:

  • Letter from your employer.
  • Group certificate for the most recent year.
  • Last year’s tax return.
  • Bank statements for the last three months which show regular payments into your account (payments must be consistent).

These alternative documents are only accepted by a few of our lenders.

For more information on alternative forms of income evidence, check out our no payslips home loan page.

Our mortgage brokers are experts in helping people who have difficulty in proving their income get approved for a home loan!

In most cases, our brokers can guide you towards the best solution so please call us on 1300 889 743 or complete our free assessment form today!

  • Summer

    Hi, I’m giving a guarantee for my daughter and son-in-law to buy a home. Do I need to provide my payslips for their application?

  • Hi Summer,

    Most lenders want to know if the guarantor is employed or not however, they don’t usually ask for any verification such as payslips from the guarantors.

  • Briarna

    I was asked to also provide a statutory declaration but I’m not sure how to write one. Do you have a template of some sort?

  • Hey Briarna,

    You can find editable templates as well as example stat decs on our statutory declaration page, which you can check out through this link:
    https://www.homeloanexperts.com.au/home-loan-documents/statutory-declaration/

  • Nielson

    Hi, I’m self-employed and so don’t have payslips. Can the income from my last job be used instead?

  • Hey Nielson,

    One of our lenders may be able to use the income from your most recent job. As a general rule, you must meet the following criteria:
    – Your business must be in the same line of work as your last job.
    – Your business must be less than 18 months old.
    – You must show that your business is currently trading.
    – Ideally, your business should be in a service industry with low expenses.
    – You must be borrowing less than 80% of the value of your property.

    If you can meet these requirements, please call 1300 889 743 to discuss this with an expert mortgage broker.

  • Andy

    I get handwritten payslips and will need a while to fix proper ones so I would like to know if draft tax returns will be accepted.

  • Hello Andy,

    Generally speaking, the lender will check to make sure the tax returns are signed and certified and backed up by notices of assessment. This is a simple fraud check to make sure that these are the tax returns you lodged with the Australian Taxation Office. Draft tax returns are only accepted by some of our lenders if your accountant can write a letter confirming they are the final copy that will be lodged with the ATO.

  • Rik

    Hi, I have a home loan currently but it should be paid off in a year or so. I want to get a new home loan to buy another house and I was asked to provide a loan repayment letter. How should I prepare this?

  • Hey Rik, many banks require a statement for all of your debts when you apply for a home loan but few lender issue statements for their loans. The simplest way to get around this problem is to ask your lender to fax a letter to your mortgage broker confirming that the loan has been paid on time. Please check out this page to learn more:
    https://www.homeloanexperts.com.au/home-loan-documents/repayment-history-letter-template/

  • Raquel

    Hi, my partner and I are leaving our jobs in NZ and so far my partner has a job lined up in Melbourne but it’s a new job (same trade). How long would we have to be in our new jobs before we could get a mortgage? We have over 50% deposit. And have a one year old with another due in a week. So I wouldn’t be working for 2 more months when we arrived. The house we are wanting is $675 and would only need $186, plus a possible floating for furnishing etc

  • Hi Raquel,

    We’ve written pages for NZ citizens https://www.homeloanexperts.com.au/non-resident-mortgages/new-zealand-citizen-mortgage/ and people who are on probation at a new job https://www.homeloanexperts.com.au/unusual-employment-loans/on-probation-home-loans/
    I’d say once your partner is 1 day in his new job then we can get a formal loan approval because we’re unlikely to need your income to show that you can afford the loan. Banks don’t like to approve a loan before the new starts as sometimes people pull out of a job offer. However we can get a conditional approval i.e. “approved subject to commencing the new job”.
    Our minimum loan size is $300,000 however you can just put the extra funds back in the loan account so that you don’t pay additional interest.
    If you’d like our help then please complete this form https://www.homeloanexperts.com.au/free-quote/

  • Richardson

    Hi, I would like to buy a 2-bedroom house in Melton VIC as an investment. I’m actually a NZ citizen living in NZ right now but I will be relocating there soon and will move into the property. My credit is clean and I’ve been in IT for 5 years now, can provide payslips. I would like my uncle to be my guarantor too.

  • Hi, we can help with this. We’ll need to find a lender that can accept non-immediate family members as guarantor. If you’ll be moving soon then you can also consider waiting until you get here and secure a job. Please call our overseas number +61 2 9194 1700 to discuss with an expert mortgage broker.