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overtime

Discussion in 'Property Finance' started by Elives, 25th Sep, 2015.

  1. Elives

    Elives Well-Known Member

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    what do banks allow for overtime 80%?

    just a general idea i know some banks will differ from one another
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    They'll look at YTD figure
     
  3. Redom

    Redom Mortgage Broker Business Member

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    Yes most lenders do take it (so long as its not from a secondary employment source). As part of APRA changes, many started discounting the income you can take. For example, CBA now take 80% of the overtime income (CBA). But yes, you can include it with most lenders.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    For sure - most lenders will accept it.

    If the deal is relying heavily on OT income to service I generally send the applicants payslip over to someone in credit or BDM to get written clarification that the income I want to use will be used.

    Cheers

    Jamie
     
  5. Elives

    Elives Well-Known Member

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    thanks guys!
     
  6. Elives

    Elives Well-Known Member

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    so say if my borrowing capacity is maxed. could i work for 3 months do as many hours as possible. then after 3 months apply for a loan? then once i have the loan go back to my normal hours :) would 3 months be enough. or would i need to be doing this for at least 1 year?
     
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  7. legallyblonde

    legallyblonde Well-Known Member

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    Three months is all you need at somewhere like CBA =)
     
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  8. datto

    datto Well-Known Member

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    Elvis, you're a sneaky devil and I like it!
     
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  9. Redom

    Redom Mortgage Broker Business Member

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    Elives - depends on the lender, some will take the LOWER of your PAYG and YTD income (depending on LVR). This will make your plan redudant with some.

    As legallyblonde mentioned, CBA are good with this, they'll allow you to take the higher of it. TO prove overtime, can provide 3 months YTD or you can show banking credits - depending on the time of the year and payslips.
     
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  10. House

    House Well-Known Member Premium Member

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    If Elives were to quit the OT right after he got the loan doesnt he (technically) have to inform the bank of this right away as it affects his servicibilty?
     
  11. Richard Taylor

    Richard Taylor Mortgage Broker & Brisbane Buyers Agent

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    Hi Alex

    No not unless the particular lender only accepted his overtime on the basis it was a contractual and since the approval there has been some change to his employment terms.

    If it was accepted on the basis of his year to date income and there was some consistency over a number of years he would be fine.

    Cheers

    Richard
     
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