Letter of employment template for a home loan application

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

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By

Richard Whitten

Edited by

Jason Loewenthal

Updated

Fact checked

What you need to know:

  • A letter of employment is used to confirm your employment status and can be used for things like home loans or for visa purposes.
  • Some home loan lenders may require supplementary evidence like payslips or income statements.
  • Your letter of employment will likely need to include specific details, including employer information, employment details and roles of the employee.

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 in the form of 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 PDF or a Google Doc (just open it then go to File and select "Make a copy" so you can edit it yourself).
PDF document (.pdf)

Google Doc

Letter of employment letter template

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

05/01/2023

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 needs to ensure that you can make repayments and are unlikely to default on the loan. To do that the lender will require evidence of your employment status and income.

What should a letter of employment include?

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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To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
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Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 554 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips
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