PAYG

What do we mean by PAYG employee
This is a person who works for an employer and receives wages or salary on a regular basis (generally on a weekly, fortnightly or monthly basis). A lender will see you as a PAYG employee if the distinct majority of your income comes from this source.

Documentation you should receive from your employer

Payslips - a payslip is generally issued each pay period summarizing both the current payment and the year to date payments(showing the pay period, gross wage, tax, super, leave)
Group certificate – this is now called a Payment Summary. An employer is required by law to issue you with a Payment Summary which summarises the total payments you receive for the financial year (which ends on 30 June each year). This is required for your tax return.

Making the lender comfortable
In order to get a loan it is necessary for a lender to see that you can pay the loan back. This means that they need to see that you have an income level which can service the loan that you need.

A lender needs proof

That you are employed
That you are earning the stated income level
That the stated income level is ‘maintainable’ – that means that you are able to earn the stated income both this year and in future years

Documents required by the lender
We like to ask clients provide a little bit ‘more’ information than what lenders ask. By giving a lender ‘more’, it can mean that they will be ‘more’ comfortable.

Employer letter – a letter from your employer (with your name and address on it) which states your role, your commencement date and your package details (with all package items individually noted)
Payslips – 3 recent payslips
Group certificates – if you have been at your employer less than two years OR you earn 5% or more of your income from commissions, bonuses, overtime or other allowances – we also need your last two group certificates