Frequently Asked Questions
Everything you need to know about payslip analysis, income verification, and how BrokerMaite helps Australian mortgage brokers.
Payslip Analysis
What does YTD mean on a payslip?
YTD stands for "Year to Date" and represents the cumulative total of a particular earning or deduction from the start of the financial year (1 July in Australia) to the current pay period. For example, if your gross income YTD shows $45,000 in December, it means you've earned $45,000 in gross pay since 1 July. YTD figures are critical for mortgage applications because lenders use them to verify annualised income, confirm income consistency, and cross-check against individual pay period amounts.
How many payslips do mortgage brokers need?
Most Australian lenders require a minimum of 2 consecutive payslips to verify income, though some may request up to 3 months of payslips depending on the applicant's employment type and income structure. For casual or variable-income employees, lenders typically ask for 3-6 months of payslips to establish a reliable income pattern. Part-time and casual employees generally need more payslips than full-time PAYG workers.
What do lenders look for on payslips?
Lenders examine several key elements: gross income and net pay, year-to-date (YTD) totals, tax withheld (PAYG), superannuation contributions, overtime and allowances, HECS/HELP deductions, leave balances, and employer details including ABN. They also check for consistency between pay periods, verify that YTD figures align with per-period amounts, and ensure the employer is a legitimate, registered business.
How to verify income from a payslip?
To verify income from a payslip, check that gross income matches the stated salary when annualised, verify YTD totals are consistent with per-period amounts, confirm tax withholding aligns with ATO tax tables for that income bracket, validate the employer's ABN on the Australian Business Register, and compare figures across multiple consecutive payslips for consistency. BrokerMaite automates this entire process with 95% accuracy.
What are common payslip red flags?
Common red flags include: YTD figures that don't reconcile with per-period amounts, inconsistent tax withholding that doesn't match ATO tables, missing or invalid employer ABN, perfectly round numbers across all fields (suggesting fabrication), formatting inconsistencies or different fonts within the document, and pay dates that fall on weekends or public holidays.
How is overtime assessed on payslips for mortgage applications?
Lenders typically assess overtime differently from base salary. Most major banks require evidence of consistent overtime across 3-6 months minimum and may use an average or only accept a portion (commonly 80%) of overtime income. Some lenders won't accept overtime at all for serviceability calculations. The key is demonstrating a consistent pattern rather than one-off spikes.
Income Verification & Serviceability
What is a serviceability calculator and how does it work?
A serviceability calculator determines how much a borrower can afford to repay based on their income, existing debts, and living expenses. Lenders use a higher assessment rate (typically 2-3% above the actual loan rate) to ensure borrowers can handle potential rate increases. The calculation considers gross income, existing loan commitments, credit card limits, living expenses (HEM or declared), and the proposed loan amount.
How does HECS/HELP debt affect borrowing capacity?
HECS/HELP debt reduces borrowing capacity because lenders factor the repayment into your expenses. Repayments are based on your income level (currently starting at 1% for incomes over $54,435 and scaling up). Lenders deduct the HECS repayment from your available income before calculating how much you can borrow. BrokerMaite automatically detects HECS/HELP deductions on payslips and factors them into serviceability assessments.
What is the difference between gross and net income for mortgage purposes?
Lenders primarily use gross income (before tax and deductions) for serviceability assessments, not net income (take-home pay). However, they then apply their own tax calculations and deductions to determine disposable income. This means the gross figures on your payslip are the most important numbers for mortgage applications. BrokerMaite extracts both gross and net figures and validates the relationship between them.
How do lenders verify employment and income?
Lenders verify employment through a combination of methods: reviewing payslips (usually 2-3 consecutive), checking the employer's ABN on the Australian Business Register, sometimes calling the employer directly, reviewing bank statements showing salary deposits, and cross-referencing with ATO income data via the Comprehensive Credit Reporting system. Some lenders now accept digital verification through payroll integrations.
Self-Employed Assessment
How is self-employed income assessed for a mortgage?
Self-employed income is typically assessed using 2 years of tax returns and financial statements. Lenders look at the net business income, then add back certain non-cash expenses like depreciation. The two-year average is commonly used, though some lenders may use the most recent year if income is trending upward. Different business structures (sole trader, company, trust) have different assessment methods.
What are addback items in self-employed income assessment?
Addback items are expenses that reduce taxable income but don't represent actual cash outflow. Common addbacks include depreciation and amortisation, one-off expenses, personal superannuation contributions made through the business, and some motor vehicle expenses. These are added back to net profit to better reflect the borrower's true earning capacity. Each lender has different policies on which items they'll add back.
Can contractors get a mortgage?
Yes, contractors can get a mortgage, though the assessment process varies by lender. Long-term contractors with consistent income history may be assessed similarly to PAYG employees by some lenders. Others treat all contractors as self-employed, requiring 2 years of tax returns. Key factors include contract length, history of renewals, industry demand, and the contractor's ABN registration history.
BrokerMaite Platform
How accurate is BrokerMaite's AI payslip analysis?
BrokerMaite achieves 95% accuracy on Australian payslips across all major payroll formats. Our AI is trained on thousands of Australian payslip formats and continuously improves. Every extraction includes confidence scores so you can quickly identify any fields that need manual review. You always maintain final review and approval before submitting to lenders.
Is my data secure with BrokerMaite?
Absolutely. All data is encrypted with AES-256 encryption, stored exclusively in Australian AWS data centers (Sydney region), and complies with the Privacy Act 1988 and Australian Privacy Principles. Documents are automatically deleted after 30 days, and you can delete them immediately at any time. We never share or sell client data.
Which lenders does BrokerMaite support?
BrokerMaite maintains up-to-date policy information for all major Australian banks and 50+ lending institutions. Our policy database is updated weekly to reflect the latest lending criteria, ensuring you always have current information when matching clients to lenders.
Can I try BrokerMaite for free?
Yes! BrokerMaite offers a 14-day free trial with full access to all features. No credit card is required to start. You can process real payslips, test the lender matching engine, and see how much time you save before committing to a paid plan.
Does BrokerMaite support self-employed analysis?
Yes. BrokerMaite analyses tax returns and financial statements for self-employed borrowers, including companies, trusts, and sole traders. Our AI performs intelligent addback analysis and can assess borrowing capacity for non-PAYG applicants, matching against lender-specific self-employed policies.
Can clients redact personal information before uploading?
Yes. While not required, clients can redact names, addresses, employee IDs, or any other personal information before uploading. Our AI focuses on income, deductions, and employment verification data, not personal identity data. The analysis remains equally accurate whether information is redacted or not.
Still have questions?
Get in touch with our team or start your free 14-day trial.