It can seem like a home loan application requires infinite paperwork. You can make the process easier by establishing your documents before you begin your application.
Your mortgage lender has an agreement to lend sensibly. They need to verify that you can afford to pay off the loan based on your recent financial circumstances.
To make that call, they need to know a lot about your income and your expenses. It’s not enough to merely tell them. You need to show proof with the right documentation.
Identification
It’s a lawful obligation that lenders confirm that you are who you appeal to be. To do this you must offer at least one primary document or two less important documents. Here are some ordinary documents you need to keep on while applying for a home loan:
Primary documents
• Australian passport
• Australian driver license
• Birth certificate
• Citizenship certificate
• Household bill, e.g., rates, phone, or electricity bills
Must need your Income Proof.
The lender will need to know what you earn so they can work out how far you can repay each month. Here are some of the details you can generally use to prove your revenue:
you’ll need photocopies of your bank statements of the last three months (or the last six months if you are carelessly employed), your most recent payslip, or an employment agreement or document from your employer specifying your current base income and PAYG payment brief or tax return.
1. Most recent own and business tax returns, and equivalent ATO Notice of Assessment
2. Recent business financial statements, showing the last two repeated years’ profit and loss report.
3. If you have other income (e.g., financing income from shares)
Expenses
Your lender will also ask for a summary of your monthly living expenses so they can verify that you have sufficient to cover your mortgage repayments.
Evaluate your current living expenditures and reflect any changes you may choose to make in the potential, should your home loan be granted. Living expenses are the funds you require to retain a sensible standard of living, including expenditures such as food, transportation, utility bill, education, and healthcare.
While most lenders ask for comparable documentation, it’s a good suggestion to check with your bank lender or mortgage broker to verify exactly what you need to offer.
If have any query feel free to ask our home loan broker for more information.