Employment & Income Matrix (Broker Use Only)

Transcription

1 Below are Beyond Bank s Employment and Income. Where Lender s Mortgage Insurance is required, the relevant provider s underwriting guidelines apply. Full-Time and Permanent Part- Time Minimum 6 months in current employment. If less than 6 months in current employment, then minimum 2 years in the same industry. Use YTD income for PPT. Either: Two of the most recent consecutive Formal Payslips Must: Be current (no more than 30 days old); Be computer-generated (not hand written); Minimum 12 months in current employment. Contain the Employer s and Borrower s names; Casual If less than 12 months in current employment, then minimum 2 years in the same industry. Contain a breakdown of allowances and deductions paid; Contain the Gross/Net income and tax paid for the pay period; Contract Second Employment Use YTD income to allow for fluctuations in hours worked. Minimum 12 months in current employment. Existing contract must be for 12 months unless renewal confirmed. Terms < 12 months require 2 years Taxation Returns when LMI is required. Must have been continuous for at least 12 months. Income must be calculated with a No taxfree threshold. Use YTD income for PPT & Casual workers to provide for fluctuations in hours worked. Contain YTD income; Contain the Employer s ABN. OR Letter from the employer Must: Be signed by employer; Be issued on business letterhead displaying the ABN; Include the name of a contact person and their position in the business; State the base gross or net income; Confirm employment start date, employment status and occupation. Where employed by family or through a family-owned or controlled company, the above must be supported by the most recent Tax Return or Tax Notice of Assessment. 1 of 7

2 Overseas Must be paid into the bank account of an Australian Financial Institution. Can only be used if paid in USD, Euros, Pounds Sterling or Yen. As per Salary Sacrifice Overtime Commission/ Bonus Salary Sacrifice income may be added back if it can be ceased at any time (eg non-compulsory Superannuation Employee contributions). The taxable income must be recalculated by obtaining the taxable income, adding the salary sacrifice amount and then recalculating the tax. Must be deemed a condition of employment (eg Nurse, Police Officer, Real Estate Salesperson). Where not deemed a condition of employment but has been confirmed as being regular for a minimum period of 12 months. Must have been confirmed as received for the last 2 years from the current employer. The average of the last 2 years is to be used for the income calculation. As per As per As per Allowances (including Vehicle Allowance) Must be a condition of employment and expected to be ongoing. For vehicle allowance, any corresponding lease or hire purchase payments must be included in the servicing assessment. As per 2 of 7

3 Superannuation Statement from Super Fund confirming income amount and frequency. Allocated Pensions require a statement to confirm that the balance held should continue for the loan term. Fully Maintained Company Vehicle Rental Income (existing or proposed rental property) Investment (Interest/ Dividends) $5,000 per annum can be added to the net income figure for servicing assessment. Reference must be made to the vehicle and/or the vehicle allowance on one of the listed verification documents. The employer must own and provide the vehicle for use at no cost to the employee. Metro and Regional Areas National Locations, High Density & Commercial properties Serviced Apartments that have a managed and/or pooled rental agreement. If guaranteed lease back (e.g. Display Home), the market rental is to be used for calculation purposes. Confirmation required that the income-yielding asset is current. The average of the last 2 years is to be used for the income calculation. 70% 50% As per the above %s Payslip or Group Certificate or Letter from Employer. One of the following: Current signed tenancy agreement confirming rent received, commencement date and termination date; Current statement from the real estate agent managing the property, evidencing rent received and outgoings paid; 6 months statements showing direct credits of rental received; A letter from a real estate agent indicating likely rental return; The rental value as stated on the Licensed Valuation. Copies of the last 2 years tax returns and Income Tax Notices of Assessment. 3 of 7

4 It is expected that the government income benefits will be permanent or considered as ongoing. Government Benefits (Excluding Newstart) The inclusion of Family Tax Benefit A & B and Parenting Payment is made on the expectation that it will be permanent for the next 5 years. Statement from relevant Government Department. If the benefit is compensation for an expense (eg Child Care Benefit), the expense is to be included. Maintenance/ Child Support If the maintenance agreement is registered with the Child Support Agency. The acceptance of other forms of maintenance/child support payments are at the discretion of Beyond Bank. Child Support Agency agreement (cannot be a verbal agreement) showing the amount payable and the name and date of birth for the eligible child/children. Overseas Pension Income Protection Payments Workers Compensation (including Work Cover) Income must be paid into the bank account of an Australian Financial Institution. Acceptable Income Protection Payments must be through a recognised provider (an Australian Insurance underwriter). The period of insurance and the expected date of return to work needs to be confirmed. Evidence of a minimum 6 consecutive payments being received into an Australian Financial Institution and paid in Australian dollars (after conversion). Income Statement from the Insurance Provider. 0% Unacceptable 4 of 7

5 (Sub Contractor) Must be subcontracting for a minimum of 2 years. If less than 2 years, but Copy of Terms and Conditions of Contract. Copies of the last 2 years tax returns. Copies of last 2 years Income Tax Notices of Assessment. Agent Portal). (Sole Trader) Must be trading for a minimum of 2 years. If less than 2 years trading in current business, but Copies of the last 2 years tax returns. Copies of the last 2 years Income Tax Notices of Assessment. Agent Portal). Copies of the last 2 years tax returns. (Partnership) Must be trading for a minimum of 2 years. If less than 2 years trading in current business, but of the Borrower s Income Portion Copies of the last 2 years individual Income Tax Notices of Assessment. Agent Portal) for individual Partners and for the Partnership. If available, copies of last 2 years financial statements including, Profit & Loss and Balance Statement. 5 of 7

6 (Company) Must be trading for a minimum of 2 years. If less than 2 years trading in current business, but of the Borrower s Income Portion Copies of the last 2 years financial statements including: Detailed Profit & Loss Statement. Statement of Comprehensive Income (Profit & Loss). Statement of Financial Position (Balance Sheet). Agent Portal) for the Company and Directors. Copies of the last 2 years individual Income Tax Notices of Assessment for Directors applying for personal finance. Allowable Add Backs Depreciation may be added back to after-tax income. Superannuation contributions in excess of the compulsory 9.5% of gross annual income may be added back to gross taxable income. One-off abnormal expenses. Interest may be added back to after-tax income, only if all the current debts of the business are included in the list of current liabilities for the borrower(s). as per the above income verification listed for the applicable entity. 6 of 7

7 Acceptable age of Financial Statements for applicants Borrowers approaching retirement age (55 years or older) New to Bank Customers Financials are to be no older than 9 months from the end of the financial year. Existing Customers Financials are to be no older than 18 months from the end of the financial year. If the financial statements are outside of allowable timeframes, then additional/supporting financial data is to be provided, such as: Management Financials (Balance Sheet & Profit & Loss Statements prepared by customers using, for example, MYOB); or Interim Financials (Balance Sheet and Profit & Loss Statements prepared by Accountant). Where the highest income earning Borrower is approaching the age of retirement and the security will be an owner-occupied home, evidence of alternative repayment options is required. N/A N/A as per the above income verification listed for the applicable Borrower type. Evidence, being not more than three months old as at the application date, is required: OR Superannuation and/ or investment statements showing the current balance and contributions made Borrower s estimation of age pension or other ongoing income. 7 of 7