Mortgage brokers who are assisting their clients with various financial elements should have an adequate understanding of annual and salary pay in order to successfully assist their clients with any questions or concerns that may arise.
What is Annual Pay?
Annual pay refers to the amount of money an individual makes over the course of a 12-month period in exchange for the work they have performed. Annual pay is made up of wages, overtime, bonuses, and other types of benefits.
What is Salary Pay?
Salary pay refers to regular fixed payments that have been agreed upon by an employee and employer over a contract. Salary is usually calculated as monthly or yearly payments, and is made up of the employee’s base salary as well as their salary sacrifice agreements. Salary does not include any types of benefits or bonuses.
What is Annualised Salary?
Annualised salary refers to the amount of money an individual makes over the course of a year if their pay rate has not been changed. Mortgage brokers use annualised salaries to gain an understanding of their client’s financial statuses as well as their abilities to afford the required mortgage repayments.
Mortgage brokers can easily calculate a client’s annualised salary by using an online Income Annualisation Calculator, which requires information like the day the client started their job, the gross income amount shown on their last group certificate, the end date shown on their most recent payslip, and the YTD gross income amount shown on their most recent payslip.