Documents required for home loans?

Understanding the documentation required for a home loan will make the process more efficient and hassle free. So what documents do you need? Making the decision to buy a home whether it’s your first home or an investment is a big one. We’re here to help make the process of finding you loan the loan. To make the process straight-forward we want to help you understand what will be required. Most documentation is standard. Here’s a useful list of the some of the documentation you will need. Each lender may have different requirements but we’ll help you through the process to ensure you have everything prepared.

100 Identity Check

Points are allotted to different types of documentary proof of identity but you must have at least 100 points of identification to be able to operate an account. So the first step will be to prove your identity. As your credit adviser, we must perform a 100 point identity check, for which we will need two of the following forms of identification:

  • Driver’s licence or other photo ID such as proof of age card or university ID card
  • Current passport
  • Birth certificate.

If you don’t have two of these ID documents, you can provide one of them plus other documentation that proves your identity. The other documentation could include Medicare Card or Citizenship Certificate. We can provide any further clarification that you might need.

Proof of income

A full time job requires your most recent PAYG payslip, but it must include your year to date income for at least three months. If your payslip doesn’t contain this information, just provide three consecutive payslips, or your employment contract, an ATO tax assessment, a PAYG summary from your employer paymaster, or a professionally prepared tax return.

Self-employed applicants just need to provide individual tax returns and ATO assessment notices and basic business financial documents. These would include at least one or two year’s tax return for the business dependent on the lender’s policy requirements, BAS statements, profit and loss statements and balance sheet.

Any other sources of income besides your job or business will also support your application so provide evidence of this as well. For example if you own an investment property provide present lease, a tax return that lists the rental income or a letter from your property manager or leasing agent. If you have shares, a statement, investment record or a tax return can be provided that details the income.

Proof of assets

Lenders will require some proof of your deposit (eg bank statements) to check you have sufficient funds to meet your new loan requirements. Make a list of your other assets including your car, stocks and shares, savings accounts, term deposits and property investments and provide whatever documentation is available to assess their current value.

An accurate assessment of any debts and ongoing expenses

Assessments of your creditworthiness will include the amount of money you already owe, your ability to repay these debts and your capacity to support the new debt you require. Reducing or paying down credit card debts or personal loans before submitting a mortgage application will increase your borrowing capacity and give a better chance of loan approval.

To make a fair assessment the lender will need evidence of your weekly outgoings and expenses. Be prepared to provide statements for any credit cards, store cards, personal loans, car loans or any other debts.

Refinancing an existing loan?

The last three month’s loan statements will be required plus the current payout figure for your loan and document any exit fees.

If you have any questions please don’t hesitate to call us. We’re here to help you get the most competitive loan for your needs, so if you are thinking about a property purchase or refinance just call us and we’ll get the process started.

 

About Paul Brazier