How to Apply for a Loan 

Choose 2 documents from the lists below. At least 1 must be from List A.

List A

  • Australian Driver’s Licence (must be current, show current residential address and photograph)
  • Birth Certificate or Birth Extract (issued by a State or Territory in Australia)
  • Proof of Age Card / NSW Photo Card (must be current and show date of birth and photograph)
  • An Australian Passport (either a current passport or a passport that expired within the last 2 years)
  • International Passport (current, containing a photograph and a signature and accompanied by a translation from a Professional Translator accredited by the National Accreditation Authority for Translators and Interpreters if not in English)
  • A Citizenship Certificate (issued by the Commonwealth of Australia)

List B

  • Pension Card (must be current and issued by Centrelink entitlin financial benefits)
  • Australian Tax Office Tax Assessment Notice (issued in the last 12 months and shows current residential address)
  • A water rates or council rates notice (issued by a local government body or utilities provider within the last 12 months)
  • A landline telephone, gas or electricity notice (issued by a utilities provider within the last 12 months)
  • A bank statement (issued by an Australian bank in the last 12 months.
  • Please note printouts of online statements are not accepted)
  • A government financial benefits notice; eg Centrelink (issued in the last 12 months)

It’s not unusual for a home loan application form to take up to 10 pages. There are four main points lenders look for:

  • Your capacity to repay.
  • Are you a good financial risk?
  • What is your collateral? Meaning is the property you’re buying adequate security for the borrowings.

Some questions you can expect to be asked are

  • What are your existing assets.
  • Your dependent children.
  • How long have you lived at your current address?
  • What do you owe and own?
  • Your accountant’s details.
  • Your personal insurance.
  • Your credit cards.

When it comes to the documents you need to support your application, all institutions are likely to ask for the same information. And yes, it is harder if you’re self-employed. To speed up the home loan process, here is what lenders says you should take:

What you need to take

PAYG

  • At least the two most recent payslips, and group certificate for the last year.
  • A letter(s) from your employer(s) detailing
  • Income and length of employment

If Self Employed

  • Past two years’ Tax returns and Notice of Assessment.
  • Past two years’ financial statements and your accountants details.
  • Some Institutions may even ask for a profit and loss statement certified by a registered accountant.

In all Cases

  • List of Assets and Liabilities

How much can you borrow

The amount you can borrow depends on what you’re buying and how much money you have left when you take out all your fixed commitments from your net income.

If you are buying a home, most lenders will let you borrow up to 80% of the purchase price, or 95% if you are willing to take on mortgage insurance. Mortgage insurance is designed to protect the lender.

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