Advice for entrepreneurs and private individuals
A mortgage letter of intent
Did you find the right home that meets all your needs, but don't you have a permanent contract with your employer? You might think that you cannot buy a home with a temporary contract. But there may also be possibilities in this situation. You can ask your employer for a mortgage letter of intent. With this document, your employer indicates that he intends to offer you a permanent contract by the time your fixed-term contract expires. The letter of intent gives the mortgage lender more certainty about your income and the options for paying the mortgage. With an 'employer statement of intent', or employer's statement, there is a chance that you can also take out a mortgage without a permanent contract.
The following matters regarding the mortgage letter of intent, mortgage applications and the course of events are highlighted on this page:
- What is a mortgage letter of intent?;
- The employer's statement, letter of intent, applying for a mortgage for a temporary contract;
- The content of the employer's letter of intent;
- Taking out a mortgage without a permanent contract;
- Your options for a mortgage without a letter of intent.
Indication of your income
If you want to take out a mortgage, a mortgage provider will always ask for an employer's statement, even if you are employed and have a contract for an indefinite period. This statement includes your total gross annual salary. In combination with your most recent pay slip, this gives the mortgage provider a good indication of your income. You also need an employer's statement if you have a fixed-term employment contract.
What is a letter of intent mortgage?
In addition to the employer's statement, you must submit a mortage letter of intent from your employer. This statement is also known as the ‘statement of continuation of employment’. The letter of intent is in fact part of the employer's declaration. With this statement, your employer indicates that he intends to offer you a contract for an indefinite period after your temporary contract expires and with effect from a specific date. You can think of an ‘employer statement of intent’ as a document in which your employer indicates that he intends to give you a permanent contract under the conditions that you continue to perform at the same level and that the conditions within the company remain the same.
What should your employer fill in on the letter of intent?
Your employer or someone else who is authorized to do so should complete the letter of intent. Therefore, both documents must be completed and signed by the same person. It goes without saying that the form must always be completed truthfully. Every question must be answered. The document is not valid until the company stamp has been put on it and the signatory has placed his or her name and signature. Then you have the official ‘letter of intent mortgage’ in your hands.
Possibilities without a letter of intent
Do you want to buy a home and do you have a temporary contract? Our accredited mortgage advisers are happy to discuss your personal situation. They also help by ensuring that the employer's statement and the letter of intent for your mortgage are correctly completed. This considerably increases the chance that it will be accepted by the mortgage lender. In addition, our experienced advisors are also credit analysts. That is why they can tell you exactly what the options are if your employer does not want to fill in a letter of intent. In such a scenario, they also examine your other income components.
Would you like to know more about the letter of intent for a mortgage or apply for a mortgage without a permanent contract? Make an appointment with our registered mortgage advisers. Call us at 020 - 67 22 109.