Letter of employment template for a home loan application

Speed up your home loan application and use our example letter of employment template to prove your income to your lender.

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An employment letter is a document provided by your employer that confirms your current employment status and income. Some lenders may require an employment letter, while many only require you to provide proof of your income, such as recent payslips or tax returns. Some lenders will require you to provide both a letter of employment and recent payslips.

Download this letter template:

Write your own employment letter for yourself (or to give to your company's HR manager to complete) using our letter template. You can download it as a Word document or a Google doc (just open it then go to File and select "Make a copy" so you can edit it yourself).
Word document (.docx)

Google document

Letter of employment letter template

Copy the below letter to use for your home loan or download it using the buttons above.

05/01/2016

ABN: 1000 XXXX XXXX

100 Example St, Sydney 2000 NSW

Re: Laura Annette Baxley

To whom it may concern,

I am writing this letter to verify that Laura A. Baxley is currently employed with XYZ Pty Ltd as a Digital Marketing Manager. She has been employed with us for three years and two months, and she is on a two-year full-time fixed contract.

Laura is a hard-working, reliable and honest employee.

Her gross salary is $85,000 and her net salary is $72,480. Laura A. Baxley’s position is in high demand.

Should you have any questions, please do not hesitate to contact me on 0461 XXX XXX.

Kind regards,

(SIGN)

Justin Hamilton

Human Resources Manager

XYZ Pty Ltd

Why does my lender need an employment letter?

When you apply for a mortgage, the lender will need you to supply evidence of your employment status and income. This information is needed to verify that you earn sufficient income to meet the mortgage repayments without enduring financial hardship.

The bank may need to verify your employment to ensure that you are unlikely to default on the loan.

What needs to be included in the employment letter?

Most Australian lenders have unique requirements for employment letters, so ensure that you consider the following:

  • Employer information. Most lenders require your employment letter to be issued on an official company letterhead that contains the company’s Australian Business Number (ABN), address, logo and contact details.
  • Employment status. The letter should contain information about the applicant’s employment status (full time or part time), position title, length of employment and financial remuneration (such as salary package or hourly wage). It must also specify the exact gross and net income.
  • Employee character details. While this is not mandatory, most lenders like to see that your current employer can vouch for qualities such as reliability, honesty and integrity.
  • Job security. It may also be a good idea to ask your employer to include a statement about your job security and the likelihood that you will continue to be employed with the company for the foreseeable future.
  • Formatting. Australian lenders require the letter to contain the formal name of both the employee and the employer. The letter should also be dated and signed correctly. In some cases, the lender may require a witness signature from a third party or a Justice of the Peace (JP).

Can I provide my lender with a faxed copy or does it need to be the original?

This will vary depending on the lender’s individual policies and eligibility requirements, but most lenders will accept a faxed copy of the employment letter.

Your lender may also accept a digital copy as a PDF.

How recent does the employment letter need to be?

Most lenders require the employment letter to be no older than 60 days from the date of receipt.

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