You have finally decided to buy your own property and are preparing to apply to the bank for mortgage loan approval. One of the things the bank will definitely ask you to do is to provide proof of income. Why does the bank require it and how to confirm the income?
Sufficient income is essential for mortgage approval
When arranging a mortgage, the bank will ask you to provide a number of forms, with proof of income being perhaps one of the most important. The sooner you provide all the paperwork, the quicker the bank will assess your application and you will have the money at your disposal.
Proving your income to the bank is crucial for mortgage approval, especially the amount of the mortgage. The higher the loan you apply for, the higher your income must be.
Where can I get a receipt?
Proof of income depends on how you earn your income.
- Employees will be issued a certificate by their employer stating their net income for the last 3 months, or the bank may require the last 3 payslips to be stamped by the employer.
- Self-employed persons must prove their income with a tax return for the last year or two.