Documents required for a home loan application

When applying for a home loan, it seems like there is endless paperwork. Having your documents prepared can make your home loan process smoother. 

Why do lenders require documents for a home loan application?

Your lender has a legal obligation to lend responsibly. The requested documents are used to verify that you can afford to repay the loan based on your current financial circumstances. The lender will need to verify the information you provide in your application such as your identity, your income and your financial position with supporting information.

What documents are mandatory for applying for a home loan application?

Each lender has their own requirements for supporting documents. As your broker, we will request the following information to make our own assessment to make lender recommendations to you. From there, we will discuss what additional documents you will need to provide your chosen lender. We try to make your home loan process as smooth as possible. 

Documents to verify your identity

Lenders are legally required to confirm that you are who you claim to be. To do this, you must provide at least one primary document or two secondary documents such as the following documents:

Primary documents
  • Australian passport
  • Foreign passport
  • Australia driver’s licence
  • Australian learner’s permit
Secondary Documents
  • Australian birth certificate
  • Australian citizenship certificate
  • Medicare card
Documents to verify your income

Lenders will want to know how much you earn so they can determine how much you are able to repay each month. The following documents are documents you can use to prove your income:

PAYG Salary or wages
  • Two most recent payslips
  • An employment contract or letter detailing your employment and salary
  • Most recent income tax return and ATO Notice of Assessment
Self-employed income
  • Last 2 most recent personal income tax returns
  • Last 2 most recent notice of assessments
  • Last 2 most recent business/company/trust income tax returns
  • Last 2 most recent years financial statements (for self-employment through company/trust)
  • Latest management financial statements (for self-employment through company/trust)
Rental income
  • Existing signed lease agreement 
  • Tax return with rental income included
Government income
  • Bank account statements showing payment credits
  • A letter from Centrelink outlining payments
Other income
  • If your home loan application relies on any other income for servicing, such as foreign income, superannuation/pension/annuity, government income sources, interest or dividend income, each lender will have different requirements and we tell you what supporting information you will need to provide. 
Documents to verify your financial position

Lenders will want to understand your overall financial position when assessing your application. They will want to know if you own assets and whether you have any other debts (liabilities). Supporting documents that lenders are generally interested in obtaining are:

  • Credit card statements
  • Car loan statements
  • Personal loan statements
  • Home loan statements for other financial institutions

What additional documents will I need to apply for a home loan application?

Depending on your loan purpose and your situation for lending, the following additional documents may be required. After you choose which lender to proceed with for your home loan, we will ask for additional information applicable to that specific lender which may include the following:

  • Copy of contract of sale
  • Building insurance policy
  • Existing home loan statements
  • Most recent council rate notice and building insurance policy
  • Evidence of genuine savings (5% of purchase price) such as savings bank statements
  • Funds to complete transaction (savings balance)
  • Copy of tenancy lease
  • Evidence of income such as rental statements or letter from a property manager indicating potential rent (if unleased)
  • Council rates notice
  • Copy of contract of sale
  • Copy of building insurance policy
  • Copy of the fixed price builders contract
  • Copy of council approved building plans, specifications or building permits
  • Copy of builder’s indemnity insurance
  • Evidence of genuine savings (5% of purchase price) such as savings bank statements
  • Funds to complete transaction (savings balance)
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