TSB Income Calculations

  • You must have one of the following to accurately calculate base pay.

    • Payslip clearly stating annual base salary

    • Employer Letter/Contract confirming base salary or hourly rate and minimum hours per week.
      The employer letter cannot state average hours, it must be ‘minimum’

    • 3x payslips that show the exact same amount of income every pay cycle - annualise this figure

    • Payslips regularly showing ‘ordinary hours’ or similar wording. For example, if the payslip shows ‘Ordinary hours - 40 x $26ph’ and then all other payments are on top of things like bonuses, overtime, meal allowances etc, then we can take 40 x 26 = $1,040 per week or $54,080PA as the base pay

  • For this you will need

    Base salary and overtime with TSB can be taken at 100% of the ‘Salary and wages’ figure on the 12 month IRD.

    Best practice is to provide base pay if possible.

  • Requirements

    • Client has worked the role for 2 years

    When the client is not on a permanent contract, we must use the average of the last 2 years income, according to their IRD summary to determine their income.

    This doesnt have to be tax years, it can be 2 years from todays date.

    It is not scaled further and is used at 100% in the calculator.

  • You will need

    • Last 2 years financials

    • IR4 if in a company

    • IR3, IR7, or IR10 if in personal/trust names

    Before beginning, take note of the owners as per companies office/annual report. If the client is only one of two owners with equal holdings, then only take 50% of any numbers calculated below.

    Business debts should be noted in the diary notes, but are not to be included in servicing.

    Calculations

    Download the ‘Self Employed Analysis Tool (SEAT)’

    Complete as per the SEAT and put the output figures into the main TSB calculator.

    Note that although TSB can accept less than 2 years financials with approval from credit, these tend to be marked down quite a lot. Best to try a different bank if possible if the application relies on this and the SEAT will not work for less than 2 years financials.

  • Typically we have found TSB to be challenging when it comes to using projections. If your application relies on this, consider another bank first, but if TSB is a must, call the TSB BDM and confirm the methodology. Please update us with the outcome for this page.