Serviceability - Annual Bonus

[Thomas]

Will the banks take an annual bonus into account in assessing servicability if the bonus has been paid for the last 3 years at a similar amount?

Specifically - what is Westpac's current position on this?

thanks

 

[Rolf Latham]

Will the banks take an annual bonus into account in assessing servicability if the bonus has been paid for the last 3 years at a similar amount?

Specifically - what is Westpac's current position on this?

thanks

Give em your PAYG summaries and you are sweet.

if an 80 % lend or less, dont bother with pays : )

t
arolf

 

[Mick C]

3 years + If it's been the same amount or within a 10% -15% variant...all good

Regards
Michael

 

[Kristine..]

Hi Thomas

Last time I had a deal with Westpac which relied on the bonus payments, Westpac Credit told me that they do not accept bonus payments, however they do base their assessment on the most recent PAYG Group Certificate.

So even though my customer had already received his bonus for the year, we couldn't submit that for servicing but could submit the previous Group Certificate plus provide a Year to Date calculation and pro-rata the current year's earnings. Which they accepted. So it was all good. All this required a bit of messing around but we got the right result in the end

Cheers
Kristine

 

[tobe]

Westpac policy is if the deal is under 80% they need one of the following,
a payslip or
a group certificate or
an employment letter.

 

[RightValue]

When I borrowed from Westpac, I applied in September, they just input the YTD income into their calculator/ application form. Their software just grossed it up very nicely.

The fact that it contained a couple of large bonuses never came into the calculations or discussions.