This is the first of my new TIP and TRICKS guide to people looking for a home loan. I'm going to split them up into 4 sections: ABSA, Nedbank, FNB and Standard Bank. Believe it these people are as complicated as you think they are so I'm going to try and makes things a little more simple for us!
Today we'll start with Nedbank. Allot of people get confused with regards to bonuses, car allowances and extras and whether or not this gets added to your home loan application as additional income... Well here's some Nedbank Home Loan advice.
BONUSES & LOANS
With regards to annual/monthly bonuses. If a bonus is paid to you monthly, it may be included as income(You will however need to provide 6 months worth of salary slips). If it's paid to you once a year as a 13th cheque, it may not be added as monthly income. If it's a performance bonus, 50% will be seen as income.
EXTRA'S & LOANS
If you have a car allowance the full amount is to be added to the income when applying for your loan.
If you earn on a commission basis, the average amount is to be worked out and 50% of that will be added as income.
If you have a entertainment allowance and it's a permanent benefit, the full amount may be added to your income.
If you work overtime, the average amount is to be worked out and 50% will be added to your income.
Should you have a rental income, i.e. you're earning money from a place that you're renting out, 40% of the rental value is added as income. This needs to be proven with a copy of the lease agreement.