home loans - Applying for and getting a Home Loan FAQs - x inc finance

 1. How much can I borrow?

Your borrowing capacity depends on a number of factors such as loan value ratio, income and types of income, e.g. casual vs full-time, other loans, credit card limits, loan terms, number of dependants and their situation, loan products, tax rates and rental income.  As a rule of thumb, most lenders will draw the line at allowing your repayments to be no more than 40% of your gross income. Click here to find out how much you can expect to borrow for a home loan based on your current salary and existing financial commitments.

2. What Documents do I need to apply for a home loan?

Each state and lender is slightly different, but the following list is pretty much what you will need in most cases.
If you are a (PAYG) employee, you'll need:

• Bank Statements showing your saving history for the past 6 months (including term deposits)
• Two most recent Pay slips or Group Certificates for the past 2 years
• Originals (& copy) of 100 points ID Check
  • Passport with photo - (70 points)
  • Current Drivers License - (40 points)
  • Credit Card, Medicare Card, Utilities Bills in your name - (25 points)

• Evidence of shares and other investments
• Contract of sale/purchase for the property if available

If you are self employed, you will also need:

• Last two year's figures
• Personal and Business Tax Returns

Other circumstances - additional information:

• Investment property - lease, rent appraisal or evidence of receipt of rental income
• Re-financing - past 12 months statements for existing loan(s), copies of rate notices and insurance policy
• Building - provide a copy of plan, specifications and builder's tender

more about the documents needed to apply for a home loan

3. What is the minimum deposit I need to buy a house?

Lenders used to require a 20% deposit on a house. These days, lenders will accept as little as 0% deposit on a home in certain circumstances. And the interest rates and loan terms might be more competitive than you think. There are two distinct categories here in terms of potential loan offerings

1. 100% product (or 0% depositloan)
2. Up to 95% products

more about the minimum deposit needed to buy a house