Proof of income - payslips etc

Discussion in 'Loans & Mortgage Brokers' started by William Oor, 18th Jan, 2022.

Join Australia's most dynamic and respected property investment community
  1. William Oor

    William Oor Active Member

    Joined:
    29th Dec, 2021
    Posts:
    44
    Location:
    Perth, WA
    I general what do lenders require as proof of income.

    I am about to start a new job after several months with no income, and want to refinance my mortgage.

    During the no income period I did not miss a payment on loan.
    1. My wife was earning (although not enough to cover loan).
    2. I was in front with payments.
    3. I had savings.

    From memory the last time I refinanced, two payslips (with Year to date earnings).

    Is this still the case?
    How much weight is on YTD earnings? (I will only have the 2x months).
    Do the lenders take into account historical ability to pay existing loan?

    Thanks Alan
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    depends, but most lenders will be fine with this as long as there is a good reason for no work.

    Typically 1 to 2 pays will be ample with a satisfactory explanation

    If more than 6 mths break some lenders like amp wont like it unless very solid reasons

    ta
    rolf
     
    William Oor likes this.
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    Your payment history and savings aren't relevant.

    Most lenders would want you to be in the new job for at least 3-6 months, at least out of any probationary period.

    There are a few lenders that will approve a loan with only a single payslip in the new job.
     
    William Oor likes this.
  4. William Oor

    William Oor Active Member

    Joined:
    29th Dec, 2021
    Posts:
    44
    Location:
    Perth, WA
    Thanks, what's a good reason :)
     
  5. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Engage a decent broker and they'll be able to assist you with this
    Some lenders won't do it, others will.
     
    William Oor likes this.
  6. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    1 or 2 payslips suffices as long as it's not casual and day rate.
     
    William Oor likes this.
  7. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Lender choice is key, and length of time not working plays into it as well.
     
  8. William Oor

    William Oor Active Member

    Joined:
    29th Dec, 2021
    Posts:
    44
    Location:
    Perth, WA
    Thanks for reply, I am planning to engage a a broker, at moment I am just trying to work out timing, and the limiting factor on when I apply will be the payslip. In the meantime I am getting my head around what I need from a broker, and ultimately the loan.
     
  9. William Oor

    William Oor Active Member

    Joined:
    29th Dec, 2021
    Posts:
    44
    Location:
    Perth, WA
    Basically I have close to 20 years of mortgage history and relevant employment history servicing the loan.

    I have had a 10month layoff for health reason, during that time I was able to service the loan via wife's income and savings.

    I am returning to full-time work with a new employer in two weeks.
     
  10. William Oor

    William Oor Active Member

    Joined:
    29th Dec, 2021
    Posts:
    44
    Location:
    Perth, WA
    It will be full time, permanent
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Given the fact you've had more than 6 months off work, you'll need more than just a couple of payslips if you're looking for a lender with the lowest interest rate.
    Do you need to refinance?
    What's your rate at the moment?
    You might be able to work with the existing lender to get a lower rate on your existing loan, or split it and get part fixed part variable, there are other options without needing to refinance.
     
    William Oor likes this.