We know, paperwork is about as much fun as folding a fitted bed sheet.
Buuuut to get important adulty things done (like a home loan) it’s essential — but not as paper-y as you think.
Lucky for you, Finspo makes home loan paperwork as pain-free as possible. You can easily upload your docs to a secure portal (no printing — phew!)
And the sooner you get your important docs to your broker, the closer you are to kicking back in your own home. Booyah!
But if you’re left scratching your head asking “what documents do I need for a home loan” we’re going to walk you through it.
Let’s get down to (paper)work.
Why do I need documents for a home loan?
Sure, it’d be nice if you could pick up the keys to your new home with no questions asked.
But there are some legal requirements that exist to help both YOU and the lender.
Firstly, the lender needs a few proof points to confirm you are, in fact, who you say you are. They’ll also need some statements, payslips, etc. to get an in-depth insight into your financial situation. This helps the lender feel confident they’re making sound, responsible lending decisions (as in, you’ll be able to pay back the loan without hardship).
Not only do these facts and figures validate your info, it can also help you. In some cases, it might uncover certain factors that lenders look favourably upon (like overtime work or bonuses) which could ultimately improve your borrowing power.
Lastly, your docs help your home loan expert help you. Because the more information we have, the better positioned we are to put together great home loan options that suit your unique situation.
So sharing your docs is kindaaa important (aka non-negotiable) for getting a home loan.
When do I need to get my docs sorted for a home loan?
If you’ve had your first meeting with a mortgage broker and you’re ready to get the refinancing or pre-approval process started ASAP, then it’s time to get your docs in (stat).
The earlier you do it, the better — because the sooner it’s out of the way, the sooner you’ll be able to start saving or hunting (and placing offers) on a property.
So, what documents do I need to get a mortgage?
Most documents required for a home loan can be broken down into three categories:
- Identity
- Income
- Financial situation
In Australia, most brokers and lenders will require the same (or very similar) documentation. Let’s take a closer look at some examples…
Docs to prove your identity
Let’s get the easiest stuff out of the way first. For proving your identity, we’re talking passport, birth certificate and driver’s license.
Docs to prove your income
This helps to paint a picture of your current income (and whether this can service the loan you’d like to apply for). Income documents include…
- Bank statements to summarise all transactions in your account for a set period (usually 6 months)
- Income statement outlining the amount you’ve earnt for the previous financial year (if you’re self-employed, the alternative would be financials from the last two years)
- Payslips usually from the last 3 – 6 months
Docs to prove your financial situation
It’s not just income that determines whether you’re home loan worthy. Lenders will also want to gain other insights into your financial situation, including…
- Superannuation balance
- Living expenses, including things like transport, groceries, education, clothing and recreation
- Any credit card debts or current loans
Note, this isn’t a conclusive list. Some lenders may request additional information to really get to know the ins-and-outs of your situation (and ultimately, get YOU a better outcome). This could include extra payment summaries or a final payslip from a previous job.
Questions? Let’s go…
Here are some of our most common questions (and answers) on the documents required for a home loan.
What happens if I’m applying for a home loan with my partner (or another person)?
In this case, both you and your partner will need to provide your own versions of the docs.
What if I’m using the same broker or lender as last time?
If you’re onto your second home and using the same broker or lender, you’ll need to provide any docs that are no longer up to date (hint: this will likely be the majority of them). With most lenders, documents that are still valid (like your driver’s licence or passport) won’t need to be uploaded again.
Should I optimise my expenses or any of my financials before submitting my home loan application?
If you’ve got time, it could be a good idea to assess your expenses and rein in your spending for at least 3 months before applying for a home loan (we’re only talking sustainable changes such as unnecessary debits, like gym memberships you don’t use). By lowering your expenses, you could potentially increase your borrowing power.
How do I know my details will be stored securely?
We can’t speak for all brokers and lenders, but at Finspo, your documents are uploaded to a portal with bank-grade security (no printing). Simple!
How long are my details valid for?
Once you’ve uploaded your home loan paperwork, your details are typically valid for 90 days. Although, it depends. Some docs (like payslips) may need to be no older than 6 weeks. If your details are no longer valid, we’ll request updated financial info.
Let’s get down to (paper)work
Sure, it might not be your idea of a fun lunchtime activity.
But it can be quick and less painful (with Finspo at least) and a great feeling when you’re done and ready to hand the reins back to your home loan expert for the rest of the heavy lifting.
Once you’ve uploaded your docs, your Finspo expert (AKA mortgage broker) will tee up your loan options chat and then you’re away!
