Home News Loan application checklist

Loan application checklist

Font size :
Nila Sweeney

Applying for a home loan is a long and complex process, involving everything from credit and reference checks to verification of employment and income.

To ensure that you have the best chance of getting your loan approved, we’ve compiled a checklist of some of the information a lender may require when assessing your mortgage application. Remember that requirements vary between financiers, so confirm the exact documentation you need directly with your lender or mortgage broker:

Information
- Full employment history
- Current and previous addresses
- Details of your current assets – car, motorbike, boat, collectibles etc
- Your income and outgoings

Employment documentation
- Current records of your salary
- Latest tax return/notice of assessment
- If self-employed, three years’ worth of tax returns
- A letter from your employer stating the tenure of your employment

Other documentation
- ID – 100 points, including passport etc
- Copies of recent credit card statements, confirming your credit limits
- Completed application for First Home Owner Grant
- Front page of the sales contract
- Six months’ worth of bank statements, to confirm genuine savings pattern
- Statutory declaration stating that funds gifted for the deposit do not need to be repaid (if applicable)
- Council rates notice for any properties you own, such as investment properties
- If purchasing an investment property, confirmation of rental income for the property (real estate agency letter)

Top tip: If you plan to reduce your credit card limit to improve your borrowing power, make sure you request the reduction with your card provider at least a week prior to applying for the loan. As you need to provide evidence of the decrease to the lender, this allows time for the card provider to send you written notice of your new credit limit.

Costs of buying
First homebuyers are often shocked at the number of expenses involved in buying a property – from legals and bank fees to government charges, the costs add up.

As a general rule, you should budget for around 10% of the purchase price to be spent on acquisition expenses. These costs vary, but the following checklist covers most of the common expenses:

 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rises will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Aug 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords