What Documents You Need When Applying for a Home Loan
When you’re preparing to apply for a home loan, knowing the documentation required can save you time and stress. Lenders need to verify your identity, income, financial standing, and other factors to assess your ability to repay the loan. Whether you're a first-time buyer, refinancing, or building, this guide covers all the essential documents you’ll need.
1. Proof of Identity
Lenders must confirm that you are who you say you are, so proof of identity is non-negotiable.
Primary Identification Documents:
- Current passport
- Driver’s license
- Photo ID such as a Proof of Age Card
Secondary Identification Documents:
If you cannot provide primary ID, you may need two secondary forms:
- Birth certificate
- Medicare card
- Recent household bill showing your name and address
- Citizenship certificate
- Health Care Card
2. Proof of Income
Your lender will need to see that you have a steady income to meet mortgage repayments.
Documents for PAYG (Full-time/Part-time Employees):
- Recent pay slips (no older than 60 days)
- A letter from your employer confirming your salary and employment status (if required)
- Group certificate or tax return from the previous year
For Self-Employed Applicants:
- Personal and business tax returns for the last two years
- Notices of tax assessment from the ATO (last two years)
- Financial statements, including profit and loss reports
For Contractors:
- Recent invoices showing income
- A letter from your client confirming your work arrangements
- Recent bank statements for the past six months
3. Proof of Financial Position (Assets and Liabilities)
Lenders will assess your financial stability by reviewing what you own versus what you owe.
Assets (What You Own):
- Savings account statements (last 3-6 months)
- Superannuation balances
- Property ownership documents
- Shares or investments
Liabilities (What You Owe):
- Credit card limits and outstanding balances
- Loan statements for car loans, personal loans, or other ongoing liabilities
4. Living Expenses
Lenders will also assess your monthly expenses to ensure you can comfortably meet loan repayments.
Common Expense Categories:
- Groceries
- Utilities (electricity, water, gas)
- Transportation (fuel, public transport fees)
- Insurance (home, car, life)
- Subscriptions (e.g., streaming services)
- Education and childcare costs
- Dining out and entertainment expenses
- Health and fitness expenses
5. Home Purchase Documents
If you're purchasing a property, you'll need to provide a copy of the contract of sale. Note that requirements can vary by state:
- NSW, ACT, TAS: Front page
- QLD, SA: First two pages
- VIC: Particulars page
- WA: Offer and acceptance (both pages)
- NT: Full contract
Proof of Deposit:
- Savings account statement showing your deposit
- Gift letter declaration (if using gifted funds)
6. Refinancing Documents
When refinancing, lenders need to assess your current financial situation and obligations.
Required Documents for Refinancing:
- Most recent statements for the loan being refinanced (last 6 months)
- Statements for other loans and credit cards (if applicable)
- Transaction history showing regular loan repayments
7. Additional Documents for Special Loan Types
Guarantor Loans:
- Guarantor’s identification (driver’s license, passport)
- Council rates notice for the guarantor’s property
- Mortgage statement for the guarantor’s property
8. Insurance Documentation
You may be required to provide proof of various insurance policies before your loan is approved:
- Home and contents insurance
- Life insurance
- Income protection insurance
Your Home Loan Documents Checklist
| Category | Specific Documents Needed | Tick Box |
|---|---|---|
| Proof of Identity | ||
| Primary Identification | Passport, driver’s license, or photo ID | |
| Secondary Identification | Birth certificate, Medicare card, recent utility bill | |
| Proof of Income | ||
| PAYG (Full-time/Part-time) | Recent pay slips (last 60 days) | |
| PAYG (Full-time/Part-time) | Letter from employer confirming salary | |
| Self-Employed | Personal and business tax returns (last 2 years) | |
| Proof of Financial Position (Assets and Liabilities) | ||
| Assets | Bank statements (last 3-6 months) | |
| Assets | Superannuation balances | |
| Assets | Property ownership documents | |
| Assets | Shares or investment documents | |
| Liabilities | Credit card statements showing outstanding balances and limits | |
| Liabilities | Loan statements for car, personal loans, etc. | |
| Living Expenses | ||
| Expenses Summary | Groceries, utilities, and other essential expenses | |
| Entertainment and Subscriptions | Streaming services and dining out | |
| Home Purchase Documents | ||
| Contract of Sale | Copy of the contract of sale (varies by state) | |
| Deposit Proof | Evidence of deposit (bank statement or gift letter) | |
| Refinancing Documents | ||
| Loan Statements | Statements for loans being refinanced (last 6 months) | |
| Repayment History | Transaction history showing regular loan repayments | |
| Specialist Loan Types | ||
| Guarantor Loans | Guarantor’s ID (driver’s license, passport) | |
| Guarantor Loans | Rates notice and mortgage statement for guarantor’s property | |
| Low Doc Loans | Business Activity Statements (BAS) for the last 12 months | |
| Low Doc Loans | Accountant’s income verification letter | |
| Construction Loans | Council-approved building plans and specifications | |
| Construction Loans | Fixed price building contract | |
| Insurance | ||
| Home and Contents | Home and contents insurance documents | |
| Life and Income Protection | Life insurance and income protection policies | |
Disclaimer: The opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations.