May 2011 All employed applicants Proof of income 1. Fixed monthly salary: 2. Weekly wages : 3. Fortnightly payers: 4.

Variable monthly salary:

Latest monthly payslip Latest 4 weekly payslips Latest 2 consecutive payslips Latest 6 months consecutive payslips

Please note: Latest payslip must not be older than 2 months from date of application Payslips from the employer are compulsory for all applications irrespective of LTV (Full Employers name must strictly be captured according to the payslips) Latest 3 months bank statements (not older than 2 months from date of application) to accompany the payslip (SBSA account holder, please provide account number and well access account details) Where applicant has taken up employment and has not yet received the first payslip a letter from the employer/employment can be submitted for consideration Handwritten payslips or computer generated salary advices are acceptable only for applicants who are earning and income of equal or less than R6000.00 p/m IRP 5 is not compulsory; however it can be called for at credits discretion (Applications submitted without the above will not be considered)

Confirmation of employment (COE) Confirmation of employment is compulsory on all applications irrespective of the LTV The current dispensation for COE on all SBSA applicants remains in place until further notice. Confirmation of Employment must be done using the under mentioned options: 1. Obtain number from 1023/ obtaining the employers contact number in the telephone directory 2. If the employer banks with SBSA, contact number can be obtained from internal data base 3. Obtain the Employers contact number form the Kredit Inform 4. Obtaining the employers contact number on the internet which must be supported by a KI check on the business to verify its existence (Employers contact numbers supplied on the application form by the customer or channel cannot be used)

Confirmation of employment via fax or e-mail should be considered as a last resort, once all other avenues have been exhausted Confirmation of employment for SA Citizens working abroad (SBSA and Non-SBSA) The following minimum documents are required for all SA citizens working abroad: 1. 2. 3. 4. 5. Obtain a copy of the SA passport Copy of the current employment contract on the company letterhead Latest payslip Copy of a valid work permit/VISA Latest 3 months Bank statements (Non-SBSA)

Verification of income All income used to qualify the applicant must be verified irrespective of the LTV 1. Matching the salary deposits reflecting on the latest 3 months personal bank account statements to the net salary reflected on the applicants latest payslip 2. Confirming the salary with the employer (this option is only allowed where the applicant has recently started employment and only has an employment contract) 3. Latest 6 months bank statements to be provided for variable income earners Please note: The salary deposit featuring on the bank statement must match the payslip net salary amount and frequency (Where income cannot be verified successfully, the income that can be verified will be used)

All self-employed applicants

If an individual is employed and self-employed, the loans must be captured as selfemployed irrespective of where the reliance of income is placed. Definition of self-employed: An applicant who is a shareholder / member of a trading Pty (LTD) / Close Corporation (CC) and derives an income from the entity will be considered as self-employed The following application types will be considered as self-employed: 1. Shareholders / Members of a trading (Pty) / Close Corporation (CC) (100% or partial shareholder) 2. Sole Proprietors is a company which is not registered with the state as a limited liability company or corporation The owner is inseparable from the sole proprietorship, so he/she is liable for any business debts. Examples of sole proprietors are Contractors, Freelance workers that have not registered a CC or PTY. 3. Trustee of a trading trust who derives direct value from the Trust 4. All applications for Sec 21 companies, NGO / NPO, churches will be considered in the self-employed assessment process

Close Corporation (CC)

Latest two years signed certified financial statements (of the business or business from which income is derived (Only applicable if percentage of shareholding is 10% or greater) Latest signed and dated statement of personal assets and liabilities Latest 3 months personal and business bank account statements (Where the applicants banks with SBSA the account numbers are to be provided) Note: Where the signed latest certified financial statements are not available, the latest set of management accounts is required. Management accounts will not be accepted in isolation. The latest two years signed audited financial statements of the business or businesses from which income is derived (Only applicable if percentage of shareholding is 10% or greater) Latest signed and dated statement of personal assets and liabilities Latest 3 months personal and business bank account statements (Where the applicants banks with SBSA the account numbers are to be provided)

Company (Pty) (LTD)

Sole Proprietor

Note: Where the signed latest audited financial statements are not available, the latest set of management accounts is required. Management accounts will not be accepted in isolation. Latest management accounts accompanied with the 3 months consecutive bank statements will be accepted Latest signed and dated statement of personal assets and liabilities Latest 3 months personal and/or business bank account statements (Where the applicants banks with SBSA, the account numbers are to be provided)

Credit may use its discretion to call for any additional information to mitigate the risk presented by the application. This can include and is not restricted to: IT3 certificates from SARS Family trees to ascertain business ownership and to determine the income stream Detailed cash flows with supporting notes and commentary Unacceptable practices on Self-employed applications: 30% of Business Turnover Adding back depreciation to net profit Net Profit cannot be used as income Income capture on all Home Loan applications must always be personal income

Income Types Cash Income An acceptable max of R6000 per month of cash earning (includes fixed and variable income) in instances paid to the employee without a banking account. To prove variable income, provide 6 months payslips or letter from employer specifying monthly variable income for the last 6 months and latest 6 months bank statements Year to date figures reflected on payslips are not acceptable Rental income on properties bonded with SBSA use full rental income received as part of total income. The full monthly repayments on the existing bonds must be included in the total monthly bond repayments. Rental income on properties bonded with other institutions only net rental income can be used as part of the monthly income To verify rental income, the latest three months bank statements reflecting the rental deposits must be provided. Should the property be bonded with another financial institution, in

Commission

Rental Income

Maintenance Car Allowance Shift Allowance Permanently Employed (Fixed Term Contract)

Monthly housing subsidy/allowance Pension/Annuities Acceptable, provided it can be supported by a letter from the pension provider and verified via 3 months bank statements Cost to company Where SBSA staff member has provided a cost to company figure packages only, the following will apply to determine the cash component of the salary package: Staff with Medical Aid use 75% of total package Staff without Medical Aid use 80% of total package In all other instances where an employed individual only provides a cost to company figure, we will apply 65% of the total package as the cash component used to qualify the applicant to the loan Overtime Not acceptable, unless received every single month Bonus/13th Not acceptable, unless reflected on the payslip on a monthly basis Cheques as a fixed income Internet bank If internet banks statements are provided, at least 1 month must be statements a copy from an authenticated bank issued statement and the other 2 statements may be from the internet No faxed bank statement will be accepted for SBSA customers Company Car Not acceptable Dividends Not acceptable Cell phone Not acceptable allowance

addition to the bank statements, a rental schedule detailing purchase price, date purchased, rental received, bond repayments, property address and market value is to be provided A divorce court order and 3 months bank statements reflecting the monthly maintenance received The full value may be added to the customers income The full value may be added to the customers income, subject to it being a fixed income If the client has a 6-12 month contract and previously employed > 2 years (not necessarily the same company), we will be guided by score outcome, however if the contract is < 6 months application to be referred to credit irrespective of score outcome 100% of the employers payment may be included as income