![]() However, if you provide a return to work letter from your employer, some banks can consider your return to work income. Many banks may decline the loan because a lot of people that go on maternity leave may not even come back to work. Here are some types of unique income and how you can get a home loan if you have these types of income. ![]() ![]() When it comes to getting a home loan, every case is unique. Generally speaking, if your DTI is over 6 (for example, you are looking for a $650,000 loan with an income of $100,000), then you are considered a higher risk and the lenders may not approve your loan. This has become even more important in recent times, as many lenders have put a cap on the debt-to-income ratio (DTI). The higher your income, the more a bank is going to be comfortable lending you a higher loan amount. That’s one of the benefits of working with a mortgage broker rather than going directly to a bank or lender for your loan. We work with some lenders who will use the higher figure, especially if we are able to give them a compelling reason as to why they should accept the higher income figure. For example, if your annualised income from the YTD calculator is $120,000, but your group certificate or ATO Income Statement is only $100,000, they will be inclined to use the $100,000 figure when they are looking at your income and ability to pay off your loan. In many cases, they will use the lower of the two figures. They will compare this to your group certificate or ATO Income Statement from the previous financial year. When banks or lenders are trying to work out your annual income, they will use a YTD calculator to work out your annual income. In other words, Year to Date (YTD) income represents what you should earn over the course of 12 months if your pay rate stays the same. It is also known as an income annualisation calculator. A year to date calculator (or YTD Calculator) will help you work out your annualised salary from the income you have earned in a portion of the year.
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