Home Loan employment letter

Confirmation of Home Loan Employment Letter Template and Guide

Rates and fees last updated on

Speed up your home loan application process by ensuring that you tick all the right boxes when providing your employment letter to the bank.

An employment letter is a document provided by your employer that confirms your current employment status and income stream. Along with an employment letter, banks may also require you to provide documentation or proof of your income, which could include:

  • Recent payslips
  • Tax returns
  • Group certificates

Generally, the letter of employment is needed to verify your income.

What does an employment letter look like? Copy the below letter to use for your home loan.


05/01/2016

ABN: 1000 XXXX XXXX

1/X George 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

Download this template as a:

Word document (.docx)

Google document

Why does a lender need an employment letter?

When you apply for a mortgage product, 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.

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.

What happens if I don’t issue an employment letter to my lender?

An employment letter is a requirement for many home loan products on the market. If you fail to provide your lender with a recent employment letter that satisfies their guidelines, you may not qualify for the home loan.

Need help with other home loans documents? Read our guides

Want to see what other rates are out there? Compare home loans below

Rates last updated September 20th, 2017
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Loan purpose
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Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.54%
3.54%
$440
$0 p.a.
80%
Borrow up to 80% LVR with no ongoing fees and a 100% offset account.
3.74%
3.74%
$0
$0 p.a.
80%
Combine a low variable interest rate and free redraw with no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
80%
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.69%
3.72%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.49%
4.47%
$0
$375 p.a.
90%
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.72%
3.74%
$0
$0 p.a.
80%
Take advantage of a 100% offset account along with no annual or application fees.
3.79%
3.84%
$445
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.79%
3.92%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
3.86%
3.87%
$0
$0 p.a.
80%
Pay no ongoing fees on a competitive variable rate home loan.
3.69%
4.86%
$0
$395 p.a.
90%
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.65%
3.66%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.69%
4.15%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.84%
3.84%
$0
$0 p.a.
110%
Requires a family member to act as guarantor. Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.79%
4.00%
$0
$10 monthly ($120 p.a.)
90%
Get a competitive interest rate for 3 years and a discounted variable rate when the fixed period ends.
3.74%
4.06%
$0
$299 p.a.
95%
A loan with no application fee and borrow up to 95% LVR.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.85%
4.10%
$500
$0 p.a.
95%
Apply for Easy Street fixed rate home loans and get a competitive loan with a fixed interest rate.
3.69%
3.75%
$600
$0 p.a.
80%
A low interest rate variable home loan with no ongoing fees.
3.64%
4.83%
$0
$0 p.a.
95%
Owner-occupiers can lock in a competitive rate with no ongoing fees. Conditions apply.
3.84%
3.84%
$0
$0 p.a.
90%
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.68%
3.69%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.74%
3.75%
$0
$0 p.a.
70%
A special variable rate home loan with no application or ongoing fees.
3.74%
3.75%
$0
$0 p.a.
90%
A competitive variable rate home loan with no application fee.
3.97%
3.99%
$0
$0 p.a.
90%
A discounted interest rate home loan with no monthly fees.
3.97%
3.97%
$0
$0 p.a.
80%
A competitive variable rate home loan with no ongoing fees.
3.74%
4.81%
$0
$0 p.a.
95%
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.72%
4.19%
$0
$0 p.a.
80%
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.88%
4.89%
$0
$395 p.a.
95%
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.99%
4.02%
$395
$0 p.a.
80%
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.83%
3.83%
$0
$0 p.a.
70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.69%
4.08%
$0
$395 p.a.
90%
A high maximum LVR home loan with redraw facility and additional payments.
3.64%
3.64%
$0
$0 p.a.
70%
A basic low-rate home loan that still offers some useful features.
3.69%
4.45%
$0
$375 p.a.
90%
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.78%
3.78%
$0
$0 p.a.
95%
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.99%
4.77%
$0
$0 p.a.
95%
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.74%
4.85%
$0
$0 p.a.
95%
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
3.99%
4.90%
$0
$395 p.a.
95%
Lock in a discounted fixed rate with a low service fee.
4.33%
4.33%
$363
$0 p.a.
70%
A variable home loan with $0 annual or monthly fees.
4.03%
4.07%
$0
$0 p.a.
95%
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
3.99%
4.98%
$0
$395 p.a.
95%
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.99%
4.99%
$0
$395 p.a.
95%
A package home loan with fee free extra repayments available during the fixed term.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Borrow up to and fix in a 3 year home loan rate. Access your account via internet and phone banking.
3.69%
4.03%
$0
$299 p.a.
80%
Enjoy a low variable rate with no application fee.
3.88%
4.47%
$0
$0 p.a.
95%
This competitive introductory rate is a limited time offer for new owner-occupiers
3.68%
3.69%
$600
$0 p.a.
90%
Get a low variable rate along with some important basic features.
3.80%
3.81%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.

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Belinda is a journalist here at finder.com.au. Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

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