When it comes to securing a home loan, your documents play a vital role in demonstrating your financial stability and meeting lender requirements. From payslips and bank statements to identification and proof of purpose, every piece of paperwork matters. A mortgage broker can assist in preparing the necessary documents for your home loan application, but the lender is responsible for reviewing and approving them.
Below, we’ve outlined the four major areas of documentation you’ll need, along with helpful templates and tips to make your application process smooth and stress-free.
1. Identification Documents
When applying for a home loan in Australia, you must satisfy the 100 points of ID system to verify your identity.
Primary Documents
You must provide at least one primary document, which can be valued at either 70 or 40 points.
- 70 Points:
- Australian Passport
- Birth Certificate
- Australian Citizenship Certificate
- 40 Points:
- Driver’s License issued by an Australian State or Territory
- Government-issued photo ID (e.g., student ID, employee ID)
- 40 Points (Category A):
- Medicare Card
- Centrelink Card
- Department of Veterans Affairs (DVA) Card
- 25 Points (Category B):
- Utility Bills (for example, electricity, gas)
- Bank Statements
- Council Rates Notice
- 10 Points (Category C):
- Records from educational institutions
- Membership cards from registered clubs
- Australian Passport (70 points)
- Medicare Card (25 points)
- Utility Bill (25 points)
- Total: 120 points
- Your two most recent payslips.
- (Optional) A letter from your employer confirming your income.
- (Optional) Your last year’s group certificate.
- Two years’ personal tax returns.
- Two years’ personal tax assessment notices.
- Two years’ company/partnership/trust tax returns.
- Two years’ financial statements (if available).
- Rental income statements or lease agreements for any investment properties
- Property management statements or rental ledger
- Bank statements showing at least 3-6 months of savings history
- Rate notices of other properties (if you own other properties)
- Gifted deposit letters (if applicable)
- Credit-card statements
- Personal loan statements
- Car loan statements
- Mortgage statements
- Student loan statements
- Evidence of payment of regular expenses like utility bills, internet and phone bills, groceries, etc.
- If you are currently renting, provide at least three months of statements showing rental payments, along with your current lease agreement.
Secondary Documents
To reach a total of 100 points, you will also need to provide secondary documents. You can combine these to receive the rest of the points you need:
Here are a few examples of how you can combine documents to meet the 100-point requirement:
2. Proof Of Income
Your income documents allow lenders to evaluate your borrowing capacity and repayment ability. Requirements vary based on your employment status:
PAYG or Salaried Individuals
Self-Employed Individuals
If you’re a self-employed contractor, you must provide invoices, a six-month transaction history, a recent statement for your pay account, a copy of your contract agreement, and a client letter verifying income and any associated expenses or employees.
For Rental Income
3. Proof of Savings And Assets
4. Debts, Liabilities And Expenses
Debts And Liabilities
Expenses
The documents you need will vary based on your situation. Different scenarios will require additional documents.
Talk To An ExpertLetter Templates and Reference Letters
Whether you’re proving your rental history, explaining the purpose of your equity release, or navigating unique situations like maternity leave, the right templates can make all the difference.
Explore our resources to ensure you meet the lender requirements.