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BSB 806 015
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& My home

What information do you need to supply when applying for a home loan?

Young couple applying for a home loan

When it comes to a home loan application, your broker or bank will need some important information from you to confirm your identity and your capacity to repay the debt. Whether you are a first-time home buyer or are refinancing a property you already own, we’ve put together a list of what information you’ll need to supply when applying for a home loan.

1. Identification

This might seem obvious but the first thing the lender needs to know is who you are, and then confirm that you are who you say you are. This means you will have to supply at least one form of primary ID:

  • Passport (Australian or foreign)
  • Australian driver’s license or learner’s permit
  • State or Territory issued photo identification card

Other forms of ID that are accepted if a primary identification is unavailable. These are:

  • Birth certificate (Australian or foreign)
  • Medicare card
  • Australian citizenship certificate
  • Tax assessment notice
  • Debit or credit card showing your name
  • Utility bills showing your name and current address

2. Proof of your income

Next up, you’ll need to show what your income is. This will help the bank work out how much you can afford to repay each month.

If you are in full or part-time employment, you’ll need to supply two recent and consecutive payslips. If you are self-employed, you’ll be asked for your most recent tax return and Australian tax notice of assessment. Both documents need to be less than 18 months old.

You may also have other income streams and just like your salary you’ll need to show details of this too. If you receive payments from the Government a letter from Centrelink detailing the payments or copies of your bank statements will be accepted. If you receive income from a rental property, pension or superannuation fund, then you will need to show evidence of this too.

3. Your assets

To get a full and clear picture of your financial situation, your bank or broker will need to know the value of your assets (what you have). Assets include:

  • Savings or term deposits
  • Cars or motorbikes
  • Properties
  • Share portfolio
  • Contents

Anything you own is an asset.

4. Your liabilities

Do you have other loans you’re paying off? How about credit card debts? Whether you are paying back your HECS-HELP loan or that last trip to Europe, you’ll need to confirm the amount owing, credit card limits and the repayment amount for all debts.

5. Your everyday expenses

Amongst the many questions you’ll be asked when applying for a home loan, don’t be surprised if “how much do you spend on UberEats?” is one of them. As well as your assets and liabilities, your living expenses need to be considered when calculating what you can afford to repay.

This means you’ll need to provide details of how much you spend each month on:

  • Utilities (water, electricity, gas, phone and internet)
  • Transport
  • Groceries
  • Rent
  • Insurance
  • Entertainment
  • Other regular outgoings like streaming-service subscriptions, meal-delivery services and charitable donations

If you think you can cut back on some expenses and save a little extra before you apply for a home loan, then it’s a very good idea to do it!

6. Other information

If you own another property and rent it out, you will also need to provide details of any ongoing expenses related to it.

For refinancing applications, the requirements for the information you provide are slightly different. As well as all the above, you’ll be asked for a completed discharge form which your current lender will also require from you.

 

It can be overwhelming when you are first starting out on your home buying journey, but we’re here to help. If you have further questions or need some assistance, contact one of our Home Loan Specialists on 13 25 77 or get in touch with one of our Mobile Home Loan Specialists – they can meet you at work or your home, even virtually.

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