The documents you need for your home loan application

It can seem like a home loan application involves endless paperwork. You can make the process smoother by organising your documents before your start your application.

Why your lender wants documents

Your mortgage lender has an obligation to lend responsibly. They need to verify that you can afford to repay the loan based on your current financial circumstances.

To make that call, they need know a lot about your income and your expenses. It’s not enough to merely tell them. You need to show evidence with the right documentation.

Here’s what most lenders will ask you to prove and the documents they will accept.

Your identity

It’s a legal requirement that lenders confirm that you are who you claim to be. To do this you must provide at least one primary document or two secondary documents. Here are some common documents you can use:

Primary documents

• Australian passport 
• foreign passport
• Australian driver licence
• Australian learner permit

Secondary documents:

• Australian birth certificate
• Australian citizenship certificate
• Medicare card
• ATO assessment notice (less than 12 months old)

If you already bank with your lender you will not have to go through the ID process again. However, if you apply with a partner who doesn’t bank with your lender, they may still need to provide this information.

Your income

The lender will want to know what you earn so they can work out how much you can repay each month. Here are some of the documents you can generally use to prove your income:

Salary or wages:

• bank account statements showing three months’ salary credits 
• payslips
• an employment contract or letter detailing your employment and salary
• tax return and ATO Notice of Assessment less than 18 months old

Self-employed income:

• tax return and ATO Notice of Assessment less than 18 months old

Government income:

• bank account statements showing payment credits
• a letter from Centrelink outlining your payments

Your financial position

Your lender will look at your overall financial position when assessing your application. Basically this means your lender wants to know if you own anything of substantial value (assets) and whether you have other debts (liabilities).

Assets are things like:

• superannuation
• shares
• vehicles

Liabilities are things like:

• credit card limits
• personal loans
• car loans

Your lender will also ask for a breakdown of your monthly living expenses so they can check that you have enough to cover your mortgage repayments.

Living expenses typically include things like:

• transport
• groceries
• gas, electricity and water bills
• recreation and entertainment
• insurance
• clothing and personal care
• education and childcare
• TV, phone and internet

Check with your lender

While most lenders ask for similar documentation, it’s a good idea to check with your bank lender or mortgage broker to confirm exactly what you need to provide.

Here’s what you need if you’re applying with ANZ.

To sum up

• Having your documents ready can make your home loan application smoother.
• Each lender has their own requirements. Ask them exactly what they need.