When you apply for a property loan, you’re obviously going to need a healthy amount of paperwork. From identification to proof of income, there are plenty of hoops to jump through, so we can give you a guide as to what to expect.
When it comes to ID, the government-issued staples of a current passport and a birth certificate will be the starting point. If you have since been married and have a new surname, they’ll need to be accompanied with your marriage certificate.
A current driver’s licence on top of that will usually fill the criteria, and documents such as Medicare cards, bank cards, rates bills, pensioner cards, health care cards and university ID cards can all help.
Once your lender is satisfied you are who you say you are, your next hoop to jump through is proof of income.
To prove your income, your lender will want to see the two most recent payslips from your current job. To coincide with that they will want to see your most recent income statement (which used to be called a group certificate).
If you run your own business and are your own employer, you’ll need to produce personal and business tax returns for the last two years.
To satisfy your lender you earn enough to service your loan, you may also need to come up with rental income statements, proof of share dividends, Centrelink statements showing pension receipts or private pension receipts, or proof of any other income you might have.
For a straight-up property loan, that will be the crux of what you need, but things take a turn if you are applying for a refinance loan.
In this instance, you will need to front up with all of the existing loan docs that include all of the relevant information within that loan.
On top of this, you’ll need to provide statements going back six months if you have any existing home loans and/or personal loans.
Any properties being offered as security for a refinance loan will need to be backed up by recent council rates notices and building insurance policies.
Credit card liabilities will have to be exposed in the form of statements for the last six months and if your balance is zero, the latest statement will suffice.
In the case of first home buyers, your First Home Saver Account statement will be required as a starting point.
First home buyers will also need documents that show the last six months of your savings and investment history.
Often, when it comes to first home buyers, other funds are involved to help get the loan over the line, and if that’s the case, evidence will be required regarding where those funds are held and if those funds are being given to you, a statutory declaration is needed signed by the people giving you the money.
First home buyers will also need their most recent credit card statement and a copy of the contract of sale of their new first-ever owned home.
Perhaps you could say on the other side of the spectrum, for investors that have been around, there are different documents that will be required.
For example, if you already have investment properties, the documents you will need include rental statements, the tenancy lease, council rate documents, a letter from the property manager confirming the rent the property is likely to attract, six months’ worth of savings history, recent credit card statements and a copy of the contract of sale of the new property being acquired.
Finally, if you are applying for a construction loan, some of the documents will obviously differ again. On top of the usual requirements consistent with most loans, you’ll also need a copy of the builder’s fixed price tender including all specifications, and then you’ll need a copy of the council approved plans.