What documents you need when applying for a mortgage?
Applying for a loan is a very big step, and it’s not always straightforward.
Before you go meet with your finance broker, make sure that you have the following documents on hand to prove your identity, income, asset, and liabilities.
1. Identity You will need two of the following three:
passport;
driver’s license; and
photo identification, such as a student ID card
If you don’t have two of these, you can also provide one, plus a birth certificate, Medicare card, citizenship certificate or similar documentation.
2. Income If you are the full-time employee, you need to prove your income by providing 2 most recent PAYG payslip, including YTD income. If your payslip doesn’t show YTD figure, you will need to provide other extra documents such as your employment contract, an ATO tax assessment, a PAYG summary or a professionally prepared tax return.
If you are self-employed, beside of providing your individual tax return and ATO assessment notices for a year, you also need to provide your business’s financial documents, such as most recent 2 years company tax returns and most recent 2 years company Balance sheets and profit and Loss statements. You maybe need 4 quarterly BAS statements or other documents from your accountant too.
Any other incomes that you receive will also need to be documented.
Property rental income - the rental income statement from agency need to provide.
Shares – A statement from stockbroker firm, investment record or tax return.
Government benefits such as family tax benefit, bring a statement from Centrelink.
3. Assets You will need to prove your savings with bank statements, as well as any other assets such as cars, stock, term deposits, and property.
4. Liabilities The way that lenders assess your ability to make repayments is based on your current total credit limit, for example, your credit card limit, mortgage and car finance. For your finance broker to improving your borrowing capacity, you should either reduce your debts and your credit cards limit. You will need current statement for your credit cards, store cards and loans.
Are you planning to refinance your current mortgage? If you are looking to refinance a current mortgage, you will need the past six months’ loan statements and the current payout figure including any exit fees.
Of course, depending on your personal circumstances and the requirements of your individual lender, the documentation you need will slight different. Come speak to Kevin on 0415820016 , he can tell you exactly what to provide and take the confusion out of applying for a home loan.