- Personal identification – 100-point ID check.
- Income proof – earning details.
- Self-employed – proof of income requirements.
- Refinancing – other documents needed when re-applying for a loan.
- First home buyers – additional records necessary when buying your first property.
- Second home buyers/ investors – added evidence required if you already own
When you apply for a home loan, all lenders need proof of identity and income. They may also require additional documents. But, this depends on your loan purpose.
All lenders will ask for 100-points of identification to prove who you are. Therefore, you’ll need to take the following:
- Passport or birth certificate – An original copy of either document is suitable – Value = 70 points each.
- Driver’s license – A valid photographic license displaying your current address – Value = 40 points.
- Marriage certificate – If your birth name has changed due to marriage, then you’ll need to supply a marriage certificate.
- Other documents – There are many other documents you can take to prove your identity. These documents include:
- Medicare card
- Credit card
- ATM/ Debit card
- Council Rates Notice
- Pensioner Concession
- Health Care Card
- Student ID card
Lenders will want to see proof of your income. This evidence can come from several sources. So, make sure you take:
- Pay slips – Two recent employer payslips – showing company name, the amount paid and year-to-date income earned.
- Recent group certificate – Stating the company and income received.
- Centrelink statements – Benefits such as Family Tax or a pension received and future payments.
- Child support declarations – Your recent judgement statement annually and a bank statement showing any regularly paid monies.
- Rental property proof – Owners of investment property need to provide a lease and a bank statement showing regular rental payment.
- Shares and dividends – Shareholders need to supply a statement of earnings.
Of course, not everyone works for an employer. So, if you work for yourself as a contractor or business owner, then, you need to supply:
- Taxation office assessments – The last two annual ATO assessments.
- Business returns – Business activity statements and your accountant prepared end-of-year documents for the last two years.
- Other documents – Centrelink statements, child support declarations, rental property proof and shares and dividends (as listed above).
Those seeking to refinance an existing property need to offer proof of income and identity, plus added documentation. Hence, you’ll need to take:
- Loan contract – Existing loan details such as who holds the loan, the loan amount and when the loan started. Plus, the period of the loan and your loan terms and conditions, including early exit penalties.
- Debt statements – Every loan and credit card statements showing the amount and date paid.
- Council rates notice – The latest council assessment for the property.
- Building insurance – Any relevant paperwork defining any insurance held on the property.
Apart from supplying proof of income and identity, you’ll also need to take:
- Savings history – Bank account and any other statements.
- Contract of sale – For the property you’re seeking to buy, subject to finance approval.
- Credit card statement – The last credit card statement with a balance
- Gifting statutory declaration – If family are gifting money, then a signed document will need to state the amount and date of gifting.
- First home buyers grant application – If you’re applying for the grant, then you’ll need proof of this and your grant amount.
After supplying proof of income and identity, you’ll also need to provide:
- Statements – Home loan, personal loan and credit card statements, as well as bank savings and investment history.
- Contract – A signed copy of the contract of sale for the second property.
- Property details – Property location, land size and other information.
Tags: Home Loans