Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
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The good news? Being organised with your paperwork and documents can actually speed up the process of getting approved. The most time-consuming part of a loan application is gathering all the data, and if you have all your supporting documents in order, the process is faster and smoother. You'll need:
This guide will help you put together your supporting documents and get your home loan application sorted as quickly as possible.
Any lender you go through will have identification requirements. You’ll have to provide 100 points of ID in the form of either 2 primary identification documents or 1 primary and 1 or more secondary identification documents. The tables below outline what documents are considered primary and secondary options, and how many points they are worth.
| Primary documents | Points |
|---|---|
| Birth certificate | 70 points |
| Name change certificate | 70 points |
| Current passport | 70 points |
| Expired passport that was not cancelled and was current within the preceding two years | 70 points |
| Citizenship certificates | 70 points |
| Diplomatic documents and official documents issued to refugees | 70 points |
| Secondary documents | Points |
|---|---|
| Driver’s licence | 40 points |
| State or Territory issued photo ID card | 40 points |
| Photo ID issued by tertiary education institute | 40 points |
| Photo card issued by banking institution where you have been a customer for at least 12 months | 40 points |
| Public service ID card including your photo and signature | 40 points |
| Licence or permit issued by State, Territory or Commonwealth government, such as a boating licence | 40 points |
| Letter confirming your identity from referee you’ve known for at least 12 months | 40 points |
| Mortgage documents | 35 points |
| Council rates notice | 35 points |
| Credit card statement | 25 points |
| Foreign driver’s licence | 25 points |
| Medicare card | 25 points |
| Credit card (must have name and signature) | 25 points |
| Utility bill with name and current address | 25 points |
| EFTPOS card (must have name and signature) | 25 points |
If you can’t produce 100 points of identification using the documents above, talk to your lender or mortgage broker as there might be other forms of documentation you can use.
There are also some scenarios where you may not need to provide identification documents. For example, if you’re applying for a home loan from a lender with which you already have a transaction account, personal loan, savings account or other products, you will have already gone through the identification process and may not have to do it again.
Some lenders may use an identity verification service instead of requiring you to submit documents. Identity verification services like ZipID will send someone to you and they will check your ID (a passport or driver's license) and have you sign a form. It's a simple process and only takes a few minutes.
"Most banks will want to verify your income, liabilities and expenses. If you are buying, the bank will want to see your deposit or savings. The bank will also do a credit check to see how you have maintained previous debt, if any. Specific documents would be most recent two payslips for employed people and most recent two years tax returns for self-employed. The document verification process can vary significantly from one bank to another, so using a mortgage broker can provide you with the specific documents required based on your individual circumstances."
Equilibria Finance| Response | Female | Male |
|---|---|---|
| In a branch | 51.02% | 50.67% |
| Online | 35.76% | 35.45% |
| Other | 6.27% | 6.36% |
| Over the phone | 4.92% | 4.62% |
| Via an app | 2.03% | 2.89% |
You can prove your income in different ways depending on your employment circumstances. If you’re a PAYG employee, the process is relatively straightforward. If you’re a casual worker or are self-employed, however, you might need a different set of documents.
As an employee, how many payslips do you need for a home loan? In most cases, they want to see the last 2 months worth, though sometimes they'll ask for up to 6 months. The payslip should state your year-to-date (YTD) income. If you can’t track down your recent payslips, most lenders will also accept the past three months’ worth of bank statements showing your salary going into your account.
If you’re a casual worker, you’ll need to provide your last financial year’s notice of assessment from the ATO.
Self-employed borrowers generally need a low documentation, or low doc, loans. This term can be somewhat misleading, as the amount of documentation you need is not generally less than with traditional home loans. You just need to produce different documentation. Instead of payslips, you can provide your lender with your most recent notice of assessment from the ATO. Generally, they'll want to see two years' worth of income evidence. Some lenders might also accept a letter from your accountant or Business Activity Statements (BAS).
If you have multiple forms of income, you’ll have to provide documentation for each source. The type of documentation required will depend upon the type of income.
A lender will not only want to see your income, but also your assets and liabilities in order to assess your full financial position. This will give them a better idea of whether or not you’re a credit risk. Put simply, assets are anything you own, while liabilities are anything you owe.
Assets could be other properties, vehicles, term deposits or high interest savings accounts. You’ll need to provide documentation, such as your vehicle registration or any relevant bank statements, for each asset you list on your application.
Details about your assets are important because lenders want to see that you have enough money for a deposit and have a history of genuine savings. You’ll also need to provide your potential lender with bank statements if your savings account is with a different financial institution.
Liabilities are any outstanding debts or ongoing payments for products such as personal loans, vehicle loans, credit cards or store cards. You’ll need to bring statements that show the current outstanding balance for each liability. For credit cards and store cards, you can provide your most recent statement. For loans, you should provide your last three statements.
If you're buying a home or an investment property your lender needs the property address to process the application. You will also need:
If you're a refinancer, the lender will also want to see a certificate of currency. The lender may also require a recent council rates notice.
As a first home buyer you may be eligible for first home owner grants or concessions. This may not require documents from you, but it's something your lender and conveyancer need to know. The lender usually lodges a grant application form on your behalf.
If you are buying a home with a parental guarantor then you need to provide extra documents. This includes information about the guarantor's assets and liabilities, including credit card and loan account statements.
As a first home buyer you may have to sign a statutory declaration if you're taking advantage of the First Home Loan Deposit Scheme or declaring that money in your account has been gifted to you by a family member.
If you're refinancing your existing mortgage with a new lender you will obviously need to provide details about that loan. You'll also need to provide all the documentation mentioned above to establish your income, assets and debts. This is because your new lender can't simply take your current loan as proof you can handle the new one. It needs to verify your current financial situation.
Investors need to support their loan application with extra documents such as:
1. Application. Compare, find the right mortgage and apply.
2. Conditional approval. Your lender assesses your basic eligibility and give you a rough idea of how much they will lend you. This is subject to a property valuation.
3. Verification and credit check. The lender checks that all the documents you've provided are correct.
4. Valuation. A professional valuation of the property is required before your lender will approve the loan.
5. Full approval. The lender approves your loan and you're ready to settle.
6. Settlement. The contracts are signed, the mortgage fees are paid and the title is exchanged. Enjoy your new home.
Your home loan application needs to come with supporting documentation. Make sure you have the following: Identification documents
Proof of income documents
Asset and liability documents
Extra documents (for guarantors, bad credit borrowers and other unique cases)
Let's look at these documents in more detail.
Usually, banks want to see at least 3 months of bank statements, but some will request 6 months. They are looking for evidence of your spending and savings habits when they review your bank statements.
Most lenders can process a home loan application in a matter of days, provided your documentation is all in order. However, if you're talking about the time between application and settlement you're talking a four to six weeks, according to most lenders.
Getting all your paperwork together in advance is the smartest way to avoid delays. But if you really are in a hurry then this guide to fast home loan application is a good start. And there are also some online lenders like Tiimely Home who offer very fast digital applications that can take minutes rather than days.
You can. There are many online lenders in the market who only offer online service and don't have physical branches. You can compare their products and learn more on this page. Keep in mind that some parts of the home buying process, such as dealing with a conveyancer, typically require a face-to-face meeting.
This does happen. The trick is not to panic. Instead you need to work out where you went wrong and take the necessary steps to have a solid application next time.
Was this content helpful to you? Thank you for your feedback!
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertiseFirst Home Buyer Guides
More home buyer help
Home Loans From
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