Employment letters

Employment letters

Do you work on a ‘cash in hand’ basis? Or do you work for a small employer who does not provide payslips? If so, it may be difficult for you to prove your income as your earnings are not deposited directly into your bank account. Working as an PAYG employee, means that you will have to prove your income in alternate ways, as an income declaration is not available.

How can i prove my income?

There are several methods available to PAYG employees who wish to verify their income for the purposes of securing a loan. These include:

  • Employment letter
  • Bank Statements: showing your income being deposited
  • Most recent years group certificate
  • Most recent years notice of assessment

Employment Letter

A letter from your employer can be obtained from Human Resources Department or from management if you work for a smaller company. It should include your current gross salary, position and period of employment.

An example employment letter should look like the following:

Date: 12/12/2010

To ABC Bank Ltd,

Re: Peter Fields

As the employer of Mr. Fields, we affirm that he has been working with our company, Green Pty Ltd, since August, 2009 in his capacity as Sales Manager.

Mr. Fields is currently a part time employee, earning is $52,000 per annum gross, with his net salary at $46,830 per annum. He is not undergoing a probationary period.

If further information is required, please contact Judy Wright on (02) 9202 2221.

Kind Regards,

Mark Smith
Human Resources Manager
Green Pty Ltd

How much can i borrow?

Providing the lender with just one of these documents, means that you are eligible to borrow up to 80% LVR. If you can provide two documents you may be able to borrow up to 90% or possible 95% LVR!

How is the loan assessed?

Your loan will be assessed as a full doc loan and not low doc. However, Lenders Mortgage Insurance (LMI) will only be payable if you are borrowing over 80% LVR.

How to apply

Working as a PAYG employee? Contact us today and we can assist you in making the application process easy and helping you get approved!