Required Documents for Your Home Loan Application
When applying for a home loan, having the right documents prepared can streamline the process and improve your chances of approval. There is no one-size-fits-all approach to the documents required by any particular applicant, so the following document list should be used as a guide only. We’ll make it very clear what documents are required, and we’ll provide a mechanism for you to send those details to us.
Again, the following is a guide, and you should rely on the requirements we provide you directly. However, you should be prepared in order to expedite your process.
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Proof of Identity
Before approving a home loan, lenders must verify your identity to comply with legal and financial regulations, such as anti-money laundering laws. Providing the correct identification documents ensures that the loan application process proceeds smoothly and without delays. Most lenders require a combination of primary and secondary identification to confirm your identity and residential address. Below are the key documents you may need to provide.
Primary Identification. A valid passport or driver’s license.
Secondary Identification. A Medicare card, bank statement, or utility bill showing your current residential address.
Additional Supporting Documents. If your name has changed (e.g., marriage certificate), you may need additional documents.
Lenders are required to verify your identity as part of their legal and compliance obligations. Having multiple forms of ID ready can help avoid delays.
Income Documents
Lenders require income documents to assess your financial capacity to repay the loan. These documents help verify your earnings, stability of employment, and overall financial health. The type of income documentation needed will depend on whether you are employed, self-employed, or earning income from other sources such as investments or rental properties. Providing accurate and up-to-date income documents ensures a smooth approval process.
Salaried Employees. Provide your most recent payslips (typically two or three) and your latest PAYG summary or tax return.
Self-Employed Applicants. Submit the last two years’ tax returns and financial statements, including business profit and loss statements.
Rental Income. If you receive rental income, provide a rental statement from your property manager or bank statements showing rental deposits.
Your income details allow the lender to determine how much you can borrow and ensure you can meet loan repayments.
Liabilities and Expenses
Lenders assess your existing financial commitments to determine your borrowing capacity. This includes credit cards, personal loans, car loans, and other recurring expenses. Providing a clear picture of your liabilities and expenses helps the lender evaluate your ability to manage additional repayments and ensures responsible lending practices.
Existing Loans. Include statements for any car loans, personal loans, or other mortgages.
Credit Card and Store Card Statements. Even if no outstanding balance exists, lenders consider your total credit limit.
Other Financial Commitments. Declare child support payments, HECS/HELP debt, lease agreements, or other ongoing financial obligations.
As part of your ‘Expenses, you will need to provide a detailed breakdown of your monthly living expenses so the lenders can take into account how much you spend as part of your everyday life. Lenders conduct this assessment so they’re able to assess your ability to repay a loan (part of the ‘Serviceability’ component of the assessment).
Living expenses can include:
- Groceries
- Fuel, electricity, NBN or Internet, and water bills
- Transport, such as fuel costs and bus fares
- Streaming subscriptions
- Insurance
- Clothing
- Education and childcare
- Eating out
- Health and fitness
- TV, phone and internet
- Other regular spending
Lenders assess your current financial obligations to determine your ability to afford the home loan.
Savings and Assets
Your savings and assets demonstrate your financial stability and ability to contribute towards your home purchase. Lenders look at your savings history, investments, and other assets to assess your financial discipline and capacity to meet loan repayments. A strong asset position can also improve your borrowing power and loan approval chances.
Bank Statements. Provide transaction history (last three to six months) for your savings accounts.
Evidence of Asset Ownership. If you own a car, investment properties, or other valuable assets, provide proof of ownership.
Your savings and assets demonstrate financial stability and may affect the loan terms available to you.
Property Documents
Property documents are essential for verifying the details of the home you intend to purchase. These documents help lenders assess the value, legal standing, and ownership structure of the property. Providing accurate and complete property documentation ensures a smoother loan approval process and protects both you and the lender from potential legal or valuation issues.
Contract of Sale. A copy of the signed contract between you and the seller.
Property Valuation Report. Some lenders conduct their own valuation, but having an independent report can be helpful.
These documents help the lender determine whether the property meets their lending criteria.
Other Documentation
Certain property purchases or unique financial situations require additional documentation.
First Home Owner Grant Details
The First Home Owner Grant (FHOG) is a government initiative designed to help first-time buyers enter the property market. If you’re eligible, this grant can provide financial assistance towards your home purchase. We can guide you through the application process and even lodge it on your behalf, ensuring you receive the benefits you’re entitled to without unnecessary delays.
Grant Application Assistance. If you’re eligible, we can help you with your First Home Owner Grant application and lodge it on your behalf.
This grant provides financial assistance to first-time buyers, helping them enter the property market more easily.
Strata Title Properties
Strata title properties are a type of property ownership commonly found in multi-unit buildings, such as apartments or townhouses. In a strata title arrangement, each individual unit or apartment within the building is owned separately, while common areas (such as hallways, gardens, and recreational facilities) are owned collectively by all the unit owners. This shared ownership is managed by a strata title scheme, which is governed by a body corporate or owners’ corporation.
When purchasing a strata title property, there are specific documents you will need to provide as part of your loan application process. These documents help confirm the legal status of the property and ensure you understand the obligations associated with shared ownership.
Strata Plan. A copy of the registered Strata Plan is required for strata title properties.
This document outlines the boundaries of your property and common areas, helping the lender assess the strata scheme’s condition.
Company Title Properties
Company title properties are a form of property ownership where the purchaser does not directly own the property but instead owns shares in a company that owns the building. The company is responsible for managing the property, including any maintenance and common areas. The number of shares held by an individual corresponds to the size of the unit they reside in, and the shareholder has the right to occupy the unit. This type of ownership is most commonly found in older apartment buildings, and it operates differently from strata title properties.
When applying for a loan for a company title property, there are several key documents that lenders will require to assess the legitimacy of the ownership and to ensure you fully understand the legal and financial obligations involved.
Memorandum and Articles of Association. A copy of the company’s governing documents.
Meeting Minutes. Copies of the minutes from the last three shareholder meetings.
Company Secretary Contact. The name and phone number of the company secretary.
Share Certificate. A copy of the company share certificate.
Company title properties function differently from strata title properties, as buyers purchase shares in a company that owns the property rather than owning the property directly.
Loans in a Company or Trustee Name
A loan in a company or trustee name is typically used when the borrower is a legal entity (such as a company or a trust) rather than an individual. This is common in situations where property is being purchased by a business, investment group, or a family trust, instead of a single person. Companies and trusts offer specific legal structures that can provide benefits like tax efficiency, asset protection, and more complex financial arrangements.
A trust is a legal arrangement where a trustee holds and manages property for the benefit of others (the beneficiaries). Trusts can be established for a variety of reasons, including asset protection, estate planning, or tax purposes. In a loan context, the company or trustee is responsible for repaying the loan.
Here are some common types of trusts in Australia:
- Family Trust – Also known as a discretionary trust, it is often used to manage family assets and distribute income to beneficiaries (family members) in a flexible manner.
- Unit Trust – A trust where beneficiaries (unit holders) own specific units, similar to shares in a company. It is commonly used in investment schemes, particularly in property and managed funds.
- Discretionary Trust – A trust where the trustee has the discretion to determine how income and capital are distributed among beneficiaries, often used for family wealth management.
- Testamentary Trust – Established under a will, this trust comes into effect after the death of the individual. It is often used for estate planning to manage the distribution of assets.
- Hybrid Trust – A trust that combines features of discretionary and unit trusts, offering flexibility for both beneficiaries and unit holders.
- Superannuation Trust – A type of trust used in self-managed superannuation funds (SMSFs) to hold assets for retirement savings.
More information on Trusts may be found in our Frequently Asked Questions module.
Here’s what most lenders will require:
Company Memorandum and Articles. A copy of the company’s governing documents.
Share Certificate. A copy of the share certificate.
Trust Deed. A copy of your current Family/Unit Trust Deed.
These documents confirm the legal structure of the business or trust and help lenders assess financial risk.
Other Proof of Deposit
Other proof of deposit refers to evidence that demonstrates the source of the deposit you are using for your home loan application. This is an essential part of the application process as it assures the lender that the funds you intend to use for the deposit are legitimate and have been properly sourced. Lenders are required to ensure that deposits do not come from unknown or suspicious sources, as this could indicate money laundering or fraud. Acceptable forms of proof include documentation showing the deposit of funds into your savings account, such as bank statements or receipts from the sale of assets. Additionally, if you are receiving a gift from family or friends, it must be deposited into your account and the gift’s origin must be clearly documented. By providing clear evidence of your deposit, you help streamline the approval process and ensure compliance with legal requirements.
Gifted Deposits. If you receive a monetary gift from family or friends, the funds must be deposited into your savings account before submitting your loan application.
Sale of Assets. If using funds from selling a car, shares, or other assets, provide proof of sale and deposit the proceeds into your savings account before applying.
Lenders require proof of deposit to verify that you have sufficient funds for the property purchase.
Speed is Important
Gathering the right documents is an essential step in the home loan process. Providing complete and accurate information can help speed up approval times and improve your chances of securing a loan that meets your needs.
Remember, we’re here to guide you through every step of the application.
