To take the stress out of applying for a home loan, it’s important to have all of your required documentation organised and prepared in advance. If you’re looking to apply for a loan with loans.com.au and you’re unsure about the documents you need, our handy checklist below can help get you started.
Each home loan buyer is unique, therefore it is important to keep in mind the requirements listed may not apply to your borrowing situation.
The following are a list of documents required to assist in the home loan approval process.
Personal identification is required by every home loan lender in order to verify your identity. To meet identification requirements, you’ll need to provide a form of primary identification including:
If you are unable to provide any primary identification, to meet loan requirements you can present two forms of secondary identification including:
Your proof of income will help to determine your home loan eligibility. The documents you provide will vary based on your conditions of employment.
If you are a full-time or part-time employee, you will need to present two of your latest payslips, your employment contract or a letter from your employer that contains the details of your employment such as the basic salary, allowances, and length of employment.
You can also present three months worth of bank statements proving your income.
If your salary has not been paid directly to your account for the last 3 months, below is an indication of what you’ll be required to provide.
If you're self-employed, documents you will need for your home loan application include:
If you receive rental income, you will need to provide a letter from a real estate agent confirming your rental income. You will also need to provide:
Other sources of income can generally include dividends, superannuation, foreign income, and other government income sources.
If you have any foreign income, superannuation/pension/annuity or other government income sources, you should provide evidence of that income for the last 3 months.
If you have interest or dividend income, you should provide evidence confirming both the current balance of that asset and the income earned for the last 12 months.
Naming the assets you own includes anything that has a tangible or precise measurable value. When it comes to detailing the value of your assets, think about their current market value. This way we can assess your financial situation to determine your financial position. If the items are insured, you can quote the insured amount as a guide.
Assets that have a measurable value might include:
Liabilities are your outstanding debts from your credit cards, and other ongoing loan repayments such as car loans and personal loans. You’ll need to provide three months statements of your credit cards and loans. You’ll also need to provide information about everyday living expenses.
You may also be asked about more significant expenses that occur irregularly, such as school or tertiary education costs and child care or child support payments.
If you are going to continue renting after you have bought a home you may need to provide:
As mentioned, there are different types of homebuyers. This makes the required documents in order to grant approval for a home loan slightly different.
Here’s a brief list of the necessary documents needed based on what kind of a home buyer you are:
If you are a first home buyer you are required to provide documentation as noted above. You may also be able to benefit from the First Home Owner Grant scheme (FHOG) where you receive a one off payment from your relevant State or Territory.
Take note, the criteria and the amount you save will vary across States and Territories and will be applied to your home loan balance.
For more information, check out our guide to what is the first home owner’s grant to determine whether you are eligible in your relevant State or Territory.
If you are looking to refinance your current home loan, the following are a list of documents you will require for home loan refinancing approval.
In order to satisfy loan requirements and meet lending criteria, you need to provide a minimum of three months worth of bank statements to the lender.
Lenders ask for proof of your income as part of your home loan application. In cases where your payslips and tax returns don’t offer enough information, you may also need to provide proof of employment.
Some lenders only require verbal confirmation, but some will seek proof of employment in the form of a letter.
To get proof of employment in written or verbal form, you can ask your employer directly or human resources department to provide a document detailing the business ABN, your name, employment and salary. You can then provide that to the mortgage lender as further proof of employment.
For your home loan application to be processed, you must provide a minimum of two consecutive payslips.
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.