Page 45 - Smart Money

Smart Money

If you are on probation at your current workplace, the bank needs to
know that, so the confirmation of employment letter needs to show
how long you have been employed and your current income. That is
generally required. If you can’t provide payslips with dates on them, you
may be able to use salary credits to your bank account. By law, you are
supposed to have payslips, but there are alternatives. A group certificate
(or payment summary, as they are now known) is pretty self-explanatory.
If you are paid on a commission basis, the lender might ask for the group
certificate, because then they can see what you have earned in previous
years and get an idea of your regular income source.

Your bank statement confirming three months’ deposit history proves
that you have been making regular deposits. You can’t just put money in
and draw it out straightaway – there has got to be a snowball effect. They
have got to see it grow without too many withdrawals. Bank statements
are sometimes required to make sure that you do not have any undeclared
debts or spending behaviours that might be considered risky by the banks.
If you are refinancing, six months of mortgage statements will suffice to
confirm that payments have been on time every month. If we are looking
to consolidate your credit cards into your mortgage, lenders will use
your credit card statements to confirm repayments have been on time
and that you have no risky spending habits.

The rates notice is used to confirm you are living at the property declared
as your principal place of residence, the bank will also check that rates has
been paid on time and that there are no outstanding amounts due. These
methods of verification are used to prove to the lender that you are of
good financial character.
The offer of acceptance, or contract of sale, is to outline many things
– purchase price, finance due date, settlement date, the terms and
conditions of contract, and any other special terms you might request be
included in the contract.

If you are buying an investment property and you don’t currently have a
lease agreement in place, the agent can provide a letter confirming the
proposed rental. However, if you already have an investment property,

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