Did you know that an employer’s statement (werkgeversverklaring) is mandatory when applying for a mortgage? And that it must meet certain requirements? We’ll walk you through what an employer’s statement is, its contents, and its significance. After reading this article, you’ll be well-equipped to start the mortgage application process for your dream home.
What is an Employer’s Statement?
An employer’s statement is a document that outlines specific details about an employee. The primary focus is on the employee’s income, along with details about the nature of the employment and other relevant information. You can request the statement directly from your employer or through the HR department of the company. Once requested, your employer will fill in the necessary details.
One key thing to note is that you need the employer’s statement when applying for a mortgage. This document serves as proof to the mortgage provider that you can handle the financial obligations of the mortgage. Additionally, they calculate the maximum mortgage amount based on your employer’s statement. Without this document, obtaining a mortgage is not possible.
What Information is Included in an Employer’s Statement?
The employer’s statement consists of six sections.
- Employer Information: General details about the employer, such as the name and address of the company.
- Employee Information: Personal details of the employee, including their position and start date.
- Nature of Employment: Indicates whether the employee has a permanent or temporary contract. It also mentions if there is a probationary period and addresses the potential impact of reorganizations.
- Statement on Continuation of Employment: In the case of a temporary contract, the employer can state whether the contract is expected to be converted into a permanent one. This section includes an intent statement.
- Income: Detailed information about the salary, expressed in amounts. This includes the gross annual salary and additional details like overtime.
- Loans/Garnishments: Specifies if there have been private loans to the employee and any wage garnishments, along with associated amounts.
How Long is the Certificate Valid?
An important formal aspect to consider is the validity of the employer’s statement. How long is it valid? The certificate is valid for three months. This means that you have three months from the signing date to submit the statement to a mortgage provider. Obtaining a mortgage is only possible within this timeframe.
Significance of an Employer’s Statement
In summary, let’s briefly highlight the utility of an employer’s statement. The document is crucial not only for securing a mortgage but also for renting a property. By providing this statement to a landlord, they can assess your ability to pay rent, establishing a level of trust before entering into a lease agreement.
If you are applying for a tourist visa for travel to another country, such as India, you may need an employer’s statement. In such cases, the statement would include details like the leave period and the purpose of the trip.
Understanding the ins and outs of the employer’s statement is essential for navigating financial transactions like mortgages and lease agreements. Armed with this knowledge, you can confidently initiate the process to secure your financial future, whether it’s for buying your dream home or embarking on international travel.