Make your mortgage application a smoother experience. Here are all the documents you need to apply for a mortgage loan
This article was produced in sponsorship with Westpac
Applying for a home loan is an exciting time, but the process can be overwhelming for some people.
The good news? The better prepared you are, the easier it can be. Part of the process includes gather documents to show your income, expenses, assets and liabilities.
While you can visit a bank branch or meet with a broker, banks like Westpac also give you the option of applying online. So you can easily download your documentation directly from your smart devices when and where it’s convenient for you.
So whether you’re getting ready to submit an application or just starting to browse the lists, get a head start with this list.
If you are not already a client of the lender you have chosen, you will need to provide documents confirming your identity and proof of address. This may just be your license or passport number listing, or you may need to provide a mix of primary (passport or driver’s license) and secondary (birth certificate, ATO assessment, or Medicare card) documents. Even if you are an existing customer, some lenders may still require an in-person first identification to start the home loan application process.
Proof of income:
For people with an annual salary, you will need to provide at least two recent payslips. Keep in mind that they should list your before and after tax salary and how often you get paid.
If your income also includes overtime, bonuses, or if you work as a casual or shift worker, you may also need to provide additional PAYG payment summaries or your tax returns for the past two years.
Candidates who are self employed will likely need to include a personal and professional income statement for the past two years, as well as a business balance sheet and income statement.
People who receive assisted income like child support, Centrelink, or an annuity may also need to provide evidence and six months or more of transactions.
Other forms of income to be submitted may also include payments from a trust and additional investments, such as a stock portfolio or brokerage account.
A quick reminder: the documents required to process your mortgage application vary depending on your personal situation and your lender. If you are unsure of your next steps, you should contact your bank for assistance.
This includes statements for your savings accounts, term deposits, superannuation, as well as a list of any assets, stocks, or bonds you may have. You will also need to provide documents proving that you have the correct deposit amount.
Your lender will perform a credit check as part of the application process, but you will also need to provide details of any outstanding loans or debts you are paying off. This could include recent statements for any additional credit cards, personal loans, car loans, or home loans you may have. If you’ve recently closed a loan or credit card after paying off the balance, it’s a good idea to provide the closing statement as part of your application.
Proof of expenses:
You will also need to provide details of your monthly expenses. When gathering supporting documents, make sure that they clearly state how much and how often you pay these expenses.
Examples of recurring monthly expenses may include groceries, child care expenses, insurance, clothing and personal care, property taxes, corporate and stratum fees, recreation and entertainment expenses, bills for transport, utilities, Internet and mobile telephony, streaming services, and higher education and training costs. To do this, uploading your most recent bank and credit card statements is a great place to start. From there, you can identify your regular spending to get a complete picture of your spending each month.
If you are currently renting, you will also need to provide your current rental agreement with the address, names of tenants and amount of rent, as well as a rent register, a letter from your real estate agent or manager, and a bank statement stating your payment cycles.
Other examples of your expenses may include child support and spousal support.
You may also want to consider getting conditional approval to help you feel more confident as you explore the market and seek to bid or bid at an auction, before your formal home loan application is approved. . However, this amount may differ slightly from the final loan amount. Conditional approval is usually good for 90 days and can be renewed if you need more time, but check with your bank.
Once you have obtained conditional approval, guaranteed your property and provided the contract of sale, you will be one step closer to receiving your mortgage contract which officially gives you the funds to purchase your property.
If you have any questions along the way, with Westpac every online candidate has access to a dedicated in-home finance manager to assist you. guide you through the process.
This information is general in nature and has been prepared without taking into account your objectives, needs and overall financial situation. For this reason, you should assess the adequacy of the information for your own situation and, if necessary, seek the advice of an appropriate professional.
This article was produced in sponsorship with Westpac