Future-proof your mortgage application

Future-proof your mortgage application

What you should know about proof of income requirements.

If you’re on the hunt for a new home, you may face questions from lenders that weren’t asked pre-COVID-19.

Lenders want to be sure that you’re in a sustainable financial position to make your mortgage repayments and may request proof of your future income as well as your income history.

What's changed?

Before COVID-19, salaried employees had to provide three payslips as evidence of income. Now, as well as payslips, lenders may look at your future employment if you are in an industry impacted by COVID-19.

This could mean providing your mortgage adviser with a letter from your employer confirming future income and job stability. Your mortgage adviser can add this to your application to help get your pre-approval.

What if I was impacted by coronavirus?

For those who received the government’s COVID-19 subsidy, or had to take time off work, lenders are looking for payslips after you returned to work or came off the subsidy.

If you work in hospitality or tourism, which have been heavily impacted by COVID-19, your application will be assessed on a case-by-case basis. Someone who works for a wine delivery company, for example, would have kept very busy during lockdown. However, if you work for a tour operator without steady income it may be difficult to get a loan right now.

What if I'm self-employed?

If you’re a self-employed tradie, such as a plumber or builder and were working at full capacity during level three, your proof of income is likely to be enough. Contractors will need to provide proof of renewed contracts.

Get expert help

To find out the requirements for your situation, contact a a Mike Pero Mortgage Adviser. As experts in home lending, they can help guide you through the mortgage application process for the lender that suits your needs.

 

Mike Pero (New Zealand) Ltd Copyright © 2020 All rights reserved | Lending and policy criteria and terms and conditions apply. Content on this website is general in nature and is not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on this content and should always seek specific financial advice appropriate to their own individual circumstances.