Home loan application checklist

To take the stress out of applying for a home loan, it’s important to have all of your required documentation organised and prepared in advance. If you’re looking to apply for a loan with loans.com.au and you’re unsure about the documents you need, our handy checklist below can help get you started.

Each home loan buyer is unique, therefore it is important to keep in mind the requirements listed may not apply to your borrowing situation.

What documents do I need for a home loan?

The following are a list of documents required to assist in the home loan approval process.

Personal Identification

Personal identification is required by every home loan lender in order to verify your identity. To meet identification requirements, you’ll need to provide a form of primary identification including:

• Passport
• Driver’s license
• State or Territory-issued photo identification card such as a Proof of Age Card

If you are unable to provide any primary identification, to meet loan requirements you can present two forms of secondary identification including:

• Birth certificate
• Medicare card
• Australian Citizenship certificate
• Utility bills with name and current address
• Tax assessment notice
• Debit/Credit card with your name

Proof of Income

Your proof of income will help to determine your home loan eligibility. The documents you provide will vary based on your conditions of employment.

Full-time or Part-time employment

If you are a full-time or part-time employee, you will need to present two of your latest payslips, your employment contract or a letter from your employer that contains the details of your employment such as the basic salary, allowances, and length of employment.

You can also present three months worth of bank statements proving your income.

If your salary has not been paid directly to your account for the last 3 months, below is an indication of what you’ll be required to provide.

Self employed

If you're self-employed, documents you will need for your home loan application include:

• One year individual tax return (not older than 22 ½ months) and accompanying Australian Tax Office notice of assessment
• One year business tax return, profit and loss statement and balance sheet (not older than 22 ½ months)

Rental income

If you receive rental income, you will need to provide a letter from a real estate agent confirming your rental income. You will also need to provide:

• Current Residential Tenancy Agreement (excluding private lease agreement)
• Bank statements confirming rental payments for the last 3 months
• Tax return with rental income included

Other income sources

Other sources of income can generally include dividends, superannuation, foreign income, and other government income sources.

If you have any foreign income, superannuation/pension/annuity or other government income sources, you should provide evidence of that income for the last 3 months.

If you have interest or dividend income, you should provide evidence confirming both the current balance of that asset and the income earned for the last 12 months.

List of Assets

Naming the assets you own includes anything that has a tangible or precise measurable value. When it comes to detailing the value of your assets, think about their current market value. This way we can assess your financial situation to determine your financial position. If the items are insured, you can quote the insured amount as a guide. 

Assets that have a measurable value might include: 

• Property, including land
• Motor Vehicles (Car, motorbike, boat, etc.)
• Investments, such as, share portfolios or term deposits
• Superannuation
• Savings
• Professional equipment (i.e. tools of trade)
• Home Contents (i.e. the insured amount)

List of Liabilities

Liabilities are your outstanding debts from your credit cards, and other ongoing loan repayments such as car loans and personal loans. You’ll need to provide three months statements of your credit cards and loans. You’ll also need to provide information about everyday living expenses.

Everyday living expenses

• Regular utility bills including gas, power, water, mobile phone and pay TV subscriptions.
• Council rates, body corporate and any ongoing maintenance.
• Transaction account and/or credit card statements. This could help estimate your monthly expenditure on things like groceries, eating out, movies, gym membership, insurance premiums and so on.

You may also be asked about more significant expenses that occur irregularly, such as school or tertiary education costs and child care or child support payments.

Ongoing rental expenses

If you are going to continue renting after you have bought a home you may need to provide:

• Three months of bank statements showing rental payments made
• Current formal lease agreement (a private lease agreement is not acceptable)

Type of homebuyer

As mentioned, there are different types of homebuyers. This makes the required documents in order to grant approval for a home loan slightly different.

Here’s a brief list of the necessary documents needed based on what kind of a home buyer you are:

First Time Home Buyer

If you are a first home buyer you are required to provide documentation as noted above. You may also be able to benefit from the First Home Owner Grant scheme (FHOG) where you receive a one off payment from your relevant State or Territory.

Take note, the criteria and the amount you save will vary across States and Territories and will be applied to your home loan balance.

For more information, check out our guide to what is the first home owner’s grant to determine whether you are eligible in your relevant State or Territory.

Refinancing

If you are looking to refinance your current home loan, the following are a list of documents you will require for home loan refinancing approval.

• Last two consecutive payslips for PAYG taxpayers
• Last two year’s tax returns with an ATO Notice of Assessment for those self-employed
• Three months of recent bank and credit card statements
• A copy of the Contract of Sale for the property you are refinancing
• If you have a benefactor who has given you a deposit to assist in the property purchase, you will need to provide evidence detailing the contribution
• If the property is a rental, evidence of rental income is to be provided
• Six months of statements for your current home loan
• A copy of your current rates notice and evidence of payment

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