Taking the Stress Out of Home Loans

Loan applications look daunting, however it does not need to be stressful.

There are numerous items that you can expect to encounter during the application process.  Lenders approve or deny your loan application based on the information provided in your application, so familiarising yourself with the information needed, requirements that need to be met, and some general home loan terms, can help smooth the process.

Proof of identity requirements

  • Lenders typically request for as as much information as possible to make their decision.
  • Photographic proof of identity, such as a passport or driver’s licence, is usually desirable, although a proof of age card may also be adequate to some lenders.
  • Secondary documentation is also needed, such as a Medicare card, credit card, rates notice, or utility bills no more than three months old.

Proof of income

  • It is important that you can articulate your financial situation during the loan application process.
  • To help lenders determine your borrowing power, your payslips, employer references, and bank statements may be required to be included in your application.

Asset declaration

  • For lenders to fully establish your borrowing capacity, it is important to declare any assets you own.
  • Bank statements for your savings accounts and other funds holdings are worth including on your application.

Liability disclosure

  • It is also imperative to communicate the quantum of any outstanding debts and other liabilities you have at the time of the loan application.
  • Financial obligations you should disclose can include other loans, credit cards, and Higher Education Contribution Scheme (HECS) debt.
  • You must also disclose all other repayments or debts you reasonably expect to occur in the future.