When applying for a home loan, your documents are crucial in showcasing your financial stability and meeting lender criteria. From payslips and bank statements to ID and purpose verification, each document is important. While a mortgage broker can help gather everything you need, the lender is the one who will review and approve your application.

1. “ID Documents You’ll Need for Your Home Loan Application”

When applying for a home loan in Australia, you’ll need to meet the 100-point ID verification system.

Primary Documents
Provide at least one primary document, worth either 70 or 40 points:

• 70 Points: Australian Passport, Birth Certificate, Australian Citizenship Certificate
• 40 Points: Australian Driver’s License, Government-issued photo ID (like student or employee ID)

Secondary Documents
Combine secondary documents to reach the total 100 points:

• 40 Points (Category A): Medicare Card, Centrelink Card, DVA Card
• 25 Points (Category B): Utility Bills, Bank Statements, Council Rates Notice
• 10 Points (Category C): School Records, Club Membership Cards

For example, you can meet the requirement with:

• Australian Passport (70 points)
• Medicare Card (25 points)
• Utility Bill (25 points)
  Total: 120 points

• “Proof of Income: Key Documents for Your Home Loan Application”

Income documents are crucial for lenders to assess your borrowing capacity and ability to repay. The required documents depend on your employment status:

For PAYG or Salaried Individuals

• Your two most recent payslips
• (Optional) Employer income confirmation letter
• (Optional) Last year’s group certificate

For Self-Employed Individuals

• Two years of personal tax returns
• Two years of personal tax assessment notices
• Two years of company/partnership/trust tax returns
• Two years of financial statements (if available)

Self-employed contractors need to provide:

• Invoices
• Six-month transaction history
• Recent pay account statement
• Contract agreement copy
• Client letter verifying income and related expenses

For Rental Income

• Rental income statements or lease agreements for investment properties
• Property management statements or rental ledger

• “Proof of Savings & Assets: Essential for Your Home Loan Application”

To support your home loan application, you’ll need proof of savings and assets:

• Bank statements showing at least 3-6 months of savings history
• Rate notices for any other properties you own
• Gifted deposit letters (if applicable)

• “Understanding Your Debts, Liabilities & Expenses for a Home Loan”

When applying for a home loan, you’ll need to provide details of your debts, liabilities, and expenses:

Debts & Liabilities

• Credit card statements
• Personal loan statements
• Car loan statements
• Mortgage statements
• Student loan statements

Expenses

• Proof of regular expenses like utility bills, internet and phone bills, groceries, etc.
• If you’re renting, include at least three months of rental payment statements along with your current lease agreement.