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Documentation – Applying for a Loan

What documentation – what do I need when I apply for a home loan?

Each state and lender is slightly different, but the following list is pretty much what you will need to have ready when you are applying for most standard home loans. When your mortgage broker comes to see you, the whole process will be quicker if you have your documents ready. All borrowers are required to provide:

> Originals (and a copy) of 100 points ID Check
- Passport with photo (70 points)
- Current drivers license (40 points)
- Credit card or Medicare card or utilities bills in your name (25 points each)

> Bank statements showing your saving history for the past six months (including term deposits)
> Evidence of shares and other investments
> Contract of sale/purchase for the property if available

Dependent upon your category as a borrower, you will also need:

PAYG employee

> Two most recent pay slips or group certificates for the past two years

self-employed

> Past two years’ business figures
> Personal and business tax returns (some lenders also require personal tax assessments)

Within the residential lending market, there are of course a range of reasons why you might be looking for a home loan beyond your primary residence. In some cases, you will need different or additional documentation.

investment property

> Copy of lease, rent appraisal or rental statement

Re-financing

> Past 6-12 months loan(s) statements
> Rates notices
> Insurance policy

building loans

For building loans there are two stages: the loan approval, and the draw-down (payments to builder):
1. Loan Approval
> Fixed-price building contract (which includes the copy of the plan and specific actions)
2. Draw-down commence progress payments to builder
> Council approved plans
> Building permit
If you are an owner builder, you will be required to provide detailed costings including quotes and relevant insurances.

Low-Document Loans and No-Document Loans

Low documentation loans really should be discussed with your mortgage broker, as the different lender requirements are inconsistent. What is consistent is that lenders do not require the standard 2-3 years financials/tax returns that a typical self-employed person would provide. You would probably be required to provide all or some of the following:

> Evidence of ABN
> GST registration (Confirms gross income over $50,000) and 6-12 BAS returns

> Self Certification of Income Declaration or Loan Affordability Declaration, dependent upon the lenderÂ
> Employment confirmation (PAYG)