To ensure your appointment goes as smoothly as possible, you’ll want to have some important information to hand. This will make the whole process seamless when it comes to your home loan application.
These are going to help your broker secure you a pre-approved home loan, and make it easier when the time comes to apply.
Identity documents
When applying for a home loan, you’ll need to adhere to the Australian government’s 100-point ID verification process to validate your identity, so your broker will need to do the same.
If you’re not aware, this is a system that allocates various points to different documents based on their level of formality. For example, a valid passport has a value of 70 points and a driver’s licence is valued at 40 points. You’ll need to provide sufficient evidence to meet a combined score of 100 points.
Income information
A lender will want to verify your income before considering your application. While lender requirements may differ, your broker will want to see evidence of the following prerequisites:
Permanent full-time or part-time employees
Two of your most recent payslips displaying your year-to-date earnings for a minimum of three months. They may also ask for a bank statement demonstrating fund inflow into your account. In some cases, a tax return may also be necessary.
Contractor or casual employee
For those in contract or casual work, you’ll need to show up to six months’ worth of payslips and bank statements reflecting income deposits. You may also need to include an ATO (Australian Taxation Office) notice and a letter confirming your employment status from your employer.
Self-employed
Self-employed applicants will typically be expected to provide financial records for the past two years, showing tax returns and profit and loss statements. Depending on your business structure, you may need to provide further information.
Other income
If you get income from other sources and want to include them into your loan assessment, you’ll need to provide valid proof. For example, if you have an investment property, a signed lease and proof of rental income will be sufficient. Evidence of share dividends, trust payments, or government pensions is also acceptable.
Proof of expenses
Verifying your expenditure and financial obligations is crucial when applying for a home loan, and your broker can offer guidance about what to include. Expenses can cover a variety of areas, but could include things such as childcare or education. Even smaller expenses, like a Netflix subscription, or gym memberships, should be included.
The easiest way to prove this is via bank and credit card statements.
Details about savings and assets
We recommend bringing your latest account statements displaying funds held in your savings accounts or term deposits. If your loan exceeds 85% or 90% of the property’s value, lenders will typically ask for proof of “genuine savings.”
Check out what non-genuine savings mean here.
Recommended documents
It's helpful to have a copy of your credit report to hand as well. You can easily get a copy online, often for free.
What to bring to your protection appointment
Making sure you’re protected and have all the relevant insurance is often just as important as securing a home loan. Speak with a broker to set up a protection review and ensure you have the following documents:
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Any benefits from your employer, e.g. death in service and sick pay
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The amount outstanding on your home loan
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Any protection plans that you may already have, alongside any we have put in place for you.
Working with your broker
While it may seem daunting gathering all the necessary information, it’s vital to ensuring a good working relationship with your broker. With the correct documents, your broker will be able to tailor their advice to your individual circumstances.
Get in touch with us today for further advice and guidance about your first home loan appointment.
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