You’ve decided to apply for a home loan. How exciting!
Being prepared and having your documents ready can help things move faster and more smoothly. However, it can feel overwhelming when trying to get your head around everything you’ll need. To help, we’ve prepared a breakdown of all the documentation you can expect to submit when you’re ready for that big step in your property journey.
Here’s what your broker will need:
It is a legal requirement that you confirm who you claim to be to your broker. You must provide at least one primary document such as:
- Australian driver’s licence
- Australian passport
Or you can supply two secondary documents such as:
- Australian birth certificate
- Australian citizenship certificate
- Medicare card
Proof of income:
Your mortgage broker will have an obligation to verify that you will be able to afford your loan repayments based on your current financial situation. To assess this, you will need to supply documentation on your income and expenses such as:
- Bank account statements showing salary credits
- Payslips (for PAYG applicants)
- Tax returns (for self-employed applicants)
Your financial position:
Additional to your income, your broker will look at your overall financial position when evaluating your application. Essentially, they need to know if you own anything that is of considerable value (assets) and whether you have other debts (liabilities). Assets can include:
Liabilities can be classified as:
- Existing home loans
- Personal loans
- Car loans
- HECS debt
In most cases, the lender requires a minimum of 3 months of statements to verify ownership and account conduct of these liabilities.
It is likely that you will also be asked about your monthly living expenses, so that it can be assessed whether you will have enough to cover mortgage repayments. Living expenses can include items such as:
- Water bills
To verify expenses the bank will look through your everyday spending account and will match this to the expenses that you have declared to your broker.
Practicing Legal certificate: (Legal Professionals only)
It is essential that you provide a practicing legal certificate when applying for a home loan in order to access exclusive benefits specific to your industry, including:
- Buying with a 10% deposit
- Waived Lender’s Mortgage Insurance (LMI)
- No parental guarantor required
Check with your broker:
What you may need to submit to the lender can vary according to your individual situation, so it is always best to have a quick chat with your trusted broker ahead of time.
This will make your application process smoother, meaning you can access your dream home sooner!
Have a question about the home loan process? Speak to our friendly team today.