Mortgage brokers who are assisting clients with home loan research and applications should be well informed about YTD income in order to successfully assist their clients with any questions or concerns that may arise. YTD income refers to Year-to-Date income, which represents the amount of money an individual earns over the course of a year if their pay rate remains the same.
When a mortgage broker needs to calculate an applicant’s YTD income, they will typically use an Income Annualisation Calculator. The Income Annualisation Calculator required the date the client started their job, the end date of their most recent payslip, the YTD gross income from their most recent payslip, and the gross income shown on their last group certificate.
Mortgage brokers rely on YTD income calculations to understand how much their client makes per year and determine if they are financially capable of being responsible for the required loan repayments.
Other Ways to Assess Income
Depending on the individual mortgage broker and their rules and regulations, they may assess their client’s income using different financial factors, including the following examples:
- Client stipend
- Overtime
- Shift allowances
- Commission income
- Salary packaging
- Workers’ compensation
- Passive income
- Bonuses
How Else is YTD Used?
YTD is a great way to get an understanding of how much income an individual or entity generates within 12 months, but it is also used for a wide variety of reasons, including the following examples:
- Company earnings
- Verifying financial health
- Investment returns
- Net pay
- Performance measuring
- Trend analysation