20
Ask us for
our loan
documentation
checklist to
allow you time to
get ‘application
ready’ prior to our
appointment.
All lenders are likely to ask for the same
information. If you’re approaching a lender
for the first time you’ll need to be ‘identified’.
When you apply for a home loan you have
to show identification up to the value
of 100 points. A driver’s licence earns 40
points, a credit card can earn 25 points and
a birth certificate 70 points. Only original
documents qualify.
It’s common for a home loan application form
to take up to 10 pages. Your lender will want
to ascertain your:
•
capacity to repay,
•
financial risk,
•
collateral (will the property you are
buying be adequate security for the
amount borrowed?), and
•
existing assets.
You will also be asked:
•
if you have dependent children,
•
how long you have lived at your current
address,
•
what you owe and own,
•
your personal insurances, and
•
your credit card details.
It is advisable to have:
•
your two most recent pay slips,
•
group certificates for the past two years,
and
•
documentation from your employer
detailing income and length of
employment.
Self employed applicants should provide
their past two years’ tax returns or past two
years’ financial statements and accountant’s
details. Some institutions may even ask for
a profit and loss statement certified by a
registered accountant.
Also needed are:
•
savings details,
•
bank statements including transaction,
saving or passbook accounts,
•
investment papers including managed
funds or term deposits,
•
what you owe and own,
•
details of personal loans, credit cards or
charge cards, and
•
tax liability if self-employed.
Details of life insurance policies and
superannuation as well as approximate value
of other assets such as furniture and jewellery
should also be included.
Loan approval
It is
best to have your loan preapproved
before you make any offers
. Knowing that
your finance is preapproved will mean you are
able to concentrate on a price range and give
your full attention to the purchase. Remember
that a vendor may also accept a lower than
advertised price knowing that your finance is
organised. They may want a quick and hassle
free sale.
Once your loan is formally approved, we
arrange mortgage documents for you to
sign. We will go through the mortgage
contract with you to ensure you understand
the contents.
APPLYING FOR A LOAN
Proofof identity
Passport
Driver’s licence
Proofofagecard/Australian tertiary institutioncard,DepartmentofDefence ID,Waterways/Boat licence
(Ifyouonlyhaveone formofphoto ID,youwillalsoneed to supply secondary identification)
Birthcertificate (required ifyouwillbeapplying for theFHOG)
Citizenshipcertificate
Centrelinkpensioncard
Medicarecard
Current/recent ratesorutilitiesbill
Taxassessmentnotice (most recent)
Income
Two latestpayslipsora letter fromemployer stating lengthofemployment
(if stillonprobation),grossandnet income, regularovertimeandallowances.
If selfemployed,youwillneedyour income tax returns from the last twofinancialyears,andyourmost recent
AssessmentNotice.Some lendersmay requireprofitand loss statementscertifiedbya registeredaccountant.
ConfirmationofanyCentrelinkpaymentsyou receive (eg.FamilyBenefits).
Detailsofanyother income,bonuses,allowancesorbenefits.
Ifbuyingan investmentproperty,youwillneed to supplyeitheracopyof the lease
agreementwith thecurrent tenant,ora letter fromyourpropertymanagerconfirming
estimated rental income.
Confirmationofnet rental income received fromanyother investmentproperties.
Expens
es
Detailsofyour rent/boardpayments
Councilandwater rates
Electricityandgasbills
Detailsofanyextraordinaryexpenses (eg.private school feesormaintenance/child supportpayments).
Loan Documentation
Checklist
