What Is Employer Credit?
Potential homeowners and borrowers who are researching the various aspects of applying for a home loan and making mortgage repayments may want to learn more about employer credits. Employer direct salary credits are a way for borrowers to make mortgage repayments.
Employer credit occurs when a borrower is enrolled in salary sacrificing with their employer and allows their mortgage lender to take out some of their sacrificed wages to make mortgage repayments electronically. However, these benefits are subject to taxation unless their employer is FBT-exempt.
There are various forms of electronic payments that a borrower can use to make mortgage repayments, including bank account transfers, BPay, and electronic transfers.
Bank account transfers will generally occur between a borrower’s savings and checking account or between the borrower and another individual. The borrower’s mortgage provider will need to give their bank certain information to successfully set up this form of electronic payment:
- Account name
- Physical address
- Account number
- e-BSB number
BPay is a type of electronic payment that allows a borrower to make repayments to various accounts, including water, telephone, council rates, and gas over the phone or the internet.
Electronic transfers operate similarly to bank account transfers and are often referred to as wire transfers. Electronic transfers are fast and convenient and can allow a borrower to easily make mortgage repayments. For a mortgage provider to set up electronic transfers, they will need to provide the borrower’s bank with the same information as bank account transfers, except instead of an e-BSB number, they will provide a SWIFT number.