Realty.com.au

Home Loan

Home Loan Checklist

Applying for a home loan requires some preparation.  The more prepared you are the easier it will be.  Spend some time putting together the required documentation.  

Here is a checklist of what you need to put together BEFORE you meet the lender or broker;

Personal Identification

  • Passport
  • Driver’s license

Or you can instead present two forms of secondary identification:

  • Birth certificate
  • Medicare card
  • Citizenship certificate
  • Utility bills with name and current address
  • Tax assessment notice
  • Debit/Credit card with your name

Proof of Income

Your proof of income will determine your home loan eligibility. The documents you provide will vary from person to person as we all have different sources of income.

If you’re an employee, you’ll 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 you’re self-employed, the documents you need to present are two years worth of your personal and business tax returns and Australian Taxation Office (ATO) assessments for the past two years.

If you earn income from a rental property, you need to give us a letter from a real estate agent confirming your rental income. You’ll also need to give us a copy of your current Residential Tenancy Agreement and bank statements that indicate the rent payments.

Your other sources of income can be your dividends, superannuation, foreign income, and other government income sources.

List of Assets

Other than your sources of income, you’ll also need to provide details of your assets. This helps to determine whether or not you can repay the loan. Your assets can be the vehicles you own, bank account details that show your savings, term deposits, high-interest savings accounts, share investments, rental properties, and superannuation.

List of Liabilities

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.

Type of homebuyer

There are different types of homebuyers. This makes the required documents slightly different. Here’s a brief list of the necessary documents needed based on what kind of a home buyer you are:

First Home Buyer:

If you are a first home buyer you may also be able to benefit from the First Home Owner Grant where you receive a one off payment. The grants vary from state to state so check on the government website in your state.

If you are refinancing you’ll need to provide:

  • PAYG taxpayers – last two payslips
  • Self-employed – last two year’s tax returns with an ATO Notice of Assessment
  • Three months of your recent bank statements and credit cards
  • A copy of the Contract of Sale for the property you are buying
  • PAYG taxpayers – last two payslips
  • Self-employed – last two year’s tax returns with an ATO Notice of Assessment
  • Three months of bank statements
  • Evidence of rental income
  • Six months of statements for your current home loan
  • Three months of statements for any loans you are consolidating i.e. credit card debt.
  • A copy of your current Rates Notice and evidence of payment

Leave a Reply