What Documents Do you Need to Apply for a Loan?

female-and-male-with-laptop

What Documents Do you Need to Apply for a Loan?

Applying for a loan is a very big step, and it’s not always straightforward. To help make it simple, here is a handy list of the documents you are likely to need when you meet with your mortgage broker.

You are ready to buy a home or ready to refinance your current mortgage and new need a new mortgage application. Before you go rushing off to meet with your local mortgage broker, be sure that you have a few documents on hand to prove your identity, income, assets and liabilities.

Identity

You will need two of the following three:

  • passport;
  • driver’s licence; and
  • photo identification, such as a university identification card or proof of age 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.

Please note: If all applicants already hold any kind of account with the bank you’re applying with, you’re considered an existing customer and are not required to further identify yourself.

Income

If you are employed on a full-time basis, this is a fairly easy part. You will need to prove your income by providing your most recent PAYG payslip, including YTD income of at least three months. If your payslips don’t list your YTD income, you will need to provide previous payslips, your employment contract, an ATO tax assessment, a PAYG summary or a professionally prepared tax return.

If you are self-employed, you’ll need to provide your individual tax return and ATO assessment notices for a year, as well as your business’s financial documents: one year’s tax return, profit and loss statement, and balance sheet. You may need BAS statements or other documents from your accountant, too.

Whether you are self-employed or not, any other income you receive will also need to be documented. For example, if you own an investment property, provide a rental statement, tax return listing the rental income or a letter from the leasing agent; if you own shares, bring a statement, investment record or tax return; and if you receive any government benefits, bring a statement from Centrelink.

Any questions? Let us help you. Call Chris today on 0490 075 039 or send an email to info@chardon.com.au