What documents are needed for a home loan?
When applying for a home loan, it’s worth having all necessary documents prepared to avoid delays. So you may be wondering what documents do I need for a home loan application?
31 Oct 2024
When applying for a home loan, it’s worth having all necessary documents prepared to avoid delays. So you may be wondering what documents do I need for a home loan application?
Before applying for a home loan, it’s often worth doing your research by comparing different lenders and home loan options. You can compare home loan lenders with Canstar, as well as look at Canstar’s most recent Home Loan Award winners, to give you a better idea.
Once you’ve made a decision on a home loan that suits your needs, it’s time to start gathering the documents that will be required throughout the application process. The information you need will depend on your circumstances and requirements may vary from lender to lender.
The information below is sourced from several different Australian lenders to provide an overview of the home loan application process and is not personal advice. Your lender may require additional documents for a home loan application. Please refer to your chosen lender’s website for full details.
What documents do I need to get a home loan?
- Personal identification – it’s important for the lender to verify your identity.
- Income details – do you have a regular, ongoing income and the ability to service the loan?
- Home loan situation – are you a first home buyer, or a frequent investor?
- Assets and liabilities – are you capable of repaying the loan?
1. Personal identification
Any lender you go through will require you to verify your identity when making a loan application. To do this you’ll need to provide primary and/or secondary identifying documents.
Forms of primary documents, often photographic identification (ID), include:
- Current passport.
- Driver’s licence.
- Photo ID such as a Proof of Age Card, Australian tertiary institution ID card, or Waterways/Boat License.
If you’re unable to present a form of primary identification, lenders will usually require at least two forms of secondary identification. If you don’t have any of the above, forms of secondary identification may include:
- Birth certificate.
- Medicare Card.
- ATM/debit card.
- Health Care Card.
- Citizenship certificate.
- Household bills with your name and address.
2. Income details
You can provide your income details in a number of different ways depending on your employment circumstances. Information about your income is vital, as it gives the lender an understanding of your financial situation, as well as your ability to service a mortgage.
If you are an employee, you will most likely need:
- A copy of your two most recent payslips.
- Bank statements (up to the last six months).
- Your most recent Payment Summary (also known as a Group Certificate) from your employer. This can usually be found in the Australian Tax Office (ATO) section of your Mygov account.
If you are self-employed, you will need:
- Personal and business tax returns.
- ATO assessments for the last two years.
Related: Home loans for contractors: can you get a loan without a permanent job?
If you have a rental income, you will need:
- A formal signed lease (either current or new).
- Your most recent rental statement.
- Tax return no older than 18 months.
Depending on your financial institution, you may also need proof of any other regular ongoing income, including:
- Bank accounts that show rental income for any investment properties or rental income statements.
- Share dividends and interest earned.
- Family tax benefits statement from Centrelink.
Read More: Centrelink home loans – are you eligible?
3. Home loan situation
Your home loan situation will determine what documents your financial institution may ask for. So for each different buying situation, it’s advised to have these documents ready:
First home buyers
- Statements showing your savings and investment history.
- Your most recent statements for your bank accounts and credit cards.
- A copy of the Contract of Sale for the property you are buying.
- Supporting evidence if other funds are contributing towards the deposit on the purchase as well (e.g. partial payment of deposit by a family guarantor, or monetary gift from an inheritance).
- A statutory declaration for any funds that are being given to you to put towards the purchase, if these funds are not already in your bank account (i.e. a promise that you will be given the funds for that purpose).
Existing owner-occupiers/ Non-first home buyers
- Your most recent statement for your credit cards.
- Account statements for all home loans and personal loans for the last six months.
- Savings and investment history for the last 6 months (savings account statements, term deposit statements, share certificates).
- A copy of the Contract of Sale for the property you are buying.
- Supporting evidence if other funds are contributing towards the purchase.
- A statutory declaration for any funds that are being given to you to put towards the purchase, if these funds are not already in your bank account (i.e. a promise that you will be given the funds for that purpose).
Refinancers
- Account statements for all home loans and personal loans for the last 6 months.
- Documentation and all relevant information for your existing home loans.
- The latest Council Rates Notice and home building insurance policy for the property or properties being used as security for the loan.
- Credit card statements for the last 6 months, or if there is nothing owed, your most recent statement.
Investors
If you already own an investment property, you will need to provide the following documents:
- Rental statements as evidence of rental income.
- The latest Council Rates Notice and landlord insurance or home building insurance policies for the property or properties being used as security for the loan.
- A copy of the tenancy lease.
- A copy of the Contract of Sale for the property you are buying.
4. Assets and liabilities
In order for the lender to determine your capacity to repay the loan, you will need to list your other assets and possible liabilities (debts, other loans etc.).
Some examples of assets include:
- Bank account details with proof of your savings.
- Current term deposit accounts.
- Share investment statements.
- Superannuation statements.
- Property or motor vehicle assets (e.g. the market value of the car you own).
Some examples of liabilities include:
- Details of any existing loans (e.g. personal loans, car loans, or other home loans) and credit card statements.
- Some lenders also require an indication of your everyday living expenses. These can include groceries, utilities bills (electricity, gas, internet, phone etc.), transport costs, streaming services and other subscriptions, insurance premiums, medical bills, health and fitness costs, costs relating to pets, education and childcare costs and other regular outgoing expenses.
Check with your lender
While most of this documentation is standard across lenders, it’s often worth checking with your lender or mortgage broker to see what documents they’ll need you to provide. Having all of your documents ready can often lead to your home loan application process being much smoother.
Owner occupied
30% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Owner occupied
30% min deposit
Redraw facility
Cover image source: Inside Creative House/Shutterstock.com
This article was reviewed by our Senior Finance Journalist Alasdair Duncan before it was updated, as part of our fact-checking process.
Owner occupied
20% min deposit
Redraw facility
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