What documents you need for a home loan application

There are a few documents you need before submitting your home loan application if you are looking to get approval. To make the process of assessing easier for you and your lender, it is best to have all your docs ready to go.

Here is a loan document check-list you can use to make sure you have all the required information ready when you apply for approval:

Home Loan Checklist:
Personal Identification (100 Points)
Employment Details and Income
Other income and assets
Savings History
Expenses and liabilities
Debt refinance details
Proof of purchase or building property
Other information required

Personal Identification (100 Points)

You’ll need to provide at least 100 points worth of identification as laid out by the Australian government. This will mean at least two forms of identification, one of which must be a photo ID. Do remember, these requirements can differ between states in terms of an ID’s value.

We generally recommend a combination of driver’s licence, and a passport or birth certificate

The most common forms of ID (with point value included) are:

• Passport: 70
• Citizenship certificate: 70
• Birth certificate: 70
• Driver License: 40
• Medicare Card: 25
• Bank Statements: 25

Some states may vary. For more information on how to provide 100 points of identification check the link relevant to you:

• New South Wales
• Victoria
• Queensland
• South Australia
• Northern Territory
• Tasmania

Employment Details and Income

You’ll have to show that you are earning consistent income to get a home loan. A lot of people ask if there are employment requirements for a home loan. While there are no specific job requirements to take out a loan or get approval, many lenders will require you to have been in your current position for a minimum of 6 to 12 months. And saying that, you generally need at least two payslips as part of your application.

You need to show proof of your income or employment. Depending on your type of employment, you may require different documents. Here is a list of documents you need based on whether you are:

An employee

• 2 recent pay slips  
• Latest (PAYG payment summary) group certificate or tax return 
• Letter from employer stating income and length of employment
• (If bonus or commission are received) – Bonus/Commission Letter 

Self-employed

If you are self-employed, additional documents will be required in your home loan application. You will need to be able to prove you are financially stable with statements from your own business. To do this, you’ll need:

• Notice of Assessment (2 years’ worth) 
• Business Transactions (1-3 months’ worth) 
• Personal/Individual & Company Tax Returns (2 years’ worth)
• Financial Statements (2 years’ worth) 

Contractor 

• Employment Contract  
• 3 month Transaction Account showing Salary Credits  

Probation 

• Letter confirming Probation Period has ended 
• Employment Contract 

Maternity

• Employment Letter – confirming maternity leave, return date, salary, position & hours. 

Assets and other income

Beyond your employment details and income, if you have any other form of assets where you are generating an income you will need to provide evidence. This can include:

• Rental income statements
• Evidence of share dividends and/or interest earned
• Government or foreign payments
• Proof of any other regular income
• Superannuation Statement
• If you have received a gift, you MUST include a letter stating the amount and that it is non-refundable (nor a debt)

Self-Managed Super Fund 

If you have a self-managed super fund you could be asked for additional documents in your application.

• Superfund Financials (2 years’ worth) – If available  
• Superfund Deed  
• Superannuation Statements (3 months’ worth)  

Savings History

At the end of the day, your ability to save and budget will be an important part of assessing your ability to meet repayments for the life of the loan. On a related side note, the lender will assess your application under what is known as serviceability criteria (recently changed in July 2019). It’s essentially a ‘stress test’, so rather than calculate if you can meet repayments under the interest rate you are applying for, they will add an additional buffer of 2.5% on top of that.

In saying that, in your application you should include:

• Last 6 months statements of savings history  

Expenses and liabilities

To be suitable for a loan you need to tell your lender of any existing debts. Lenders have become more cautious in who they lend to and are requiring more thorough proof of your living expenses and disclosed liabilities. Make sure to be upfront about where you are spending your money.

A few things to include in your application to show proof of your debts:

• Credit card statements showing limits (3 months if paid out in full each month) 
• Bank transaction account history (1 to 4 months depending on circumstances)
• Personal loans or any other loan statements that are currently being re-paid 

Check out our lending specialists top tips to meet lending criteria.

Debt refinance details

If you are refinancing a current home loan you will need some additional documents for your loan application, as follows:

• Loan statements from existing lenders (last 6 months of the loans to be paid out) 
• Other documents that include loan details such as the date the loan commenced, loan period and if any early break costs exist
• Recent council rate notice and any existing building insurance policies

Proof of purchase or building property

This will depend on your circumstances and the order in which you are progressing with your loan application, but if you have already purchased or are currently building, there are a few documents you may or not need.

• Copy of the front page of the Contact of Sale
• First Home-owners Grant application form (if required) 
• Builders fixed price contract and plans 
• Copy of council approved plans

Other information required

Please note, this is only a guide and other information may be required depending on an individual’s circumstances. Every lender may be slightly different in what they want from you. It can be tough getting approval with current lending conditions, so seek professional advice if you need it.  

Complete the loan application and you’re done!

The final piece of the puzzle will be for you to complete and submit the application form. Make sure all additional documentation is ready and you have made copies for yourself.

Finally, go over your application again to ensure everything is in order. If you are working with a mortgage broker like Successful Ways, we can help put the application together for you and point out if there is anything missing. This is extremely important if you want approval in place before you start searching for a property. The more thorough you are now, the more time you will save by avoiding unnecessary requests from the lender.

Now that you’ve checked all the boxes, hand over the documents to your chosen lender to begin the process. If everything looks good, you will be approved in no time. Good luck!

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