Five Things you’ll need to apply for a Home Loan


Five Things you’ll need to apply for a Home Loan


Ready to start shopping for your dream home? The first step is to sort out your finances so you can present them to a mortgage broker or lender.

Being organised for your loan application meetings and having all the relevant documents on hand, adds to the perception that you’re a trustworthy and organised person who can be relied upon to repay the loan under the terms of the mortgage.

Here are some of the things you will typically need for a home loan application.

1. Good Credit History

Ideally lenders prefer their customers to have a clean credit history before they agree to loan large sums of money. This means you should try to minimise your debts – pay off all your credit cards on time, make sure your mobile phone plan and other household bills are regularly paid on time, and don’t default on any retailer interest-free payment plans. Make sure you don’t forget about any other loans you may have – quite often these will cause issues with the loan application if you haven’t disclosed them!

2. Proof of Employment and Steady Income

You will be required to show proof of employment (usually in the form of a letter from your employer to state that you are still working) as well as written proof of your income over the last few years. Pay slips, PAYG statements and/or tax returns will usually be accepted.

3. Proof of Assets

If you have other additional assets or financial investments, these will help to increase the likelihood of your mortgage being pre-approved. Bank statements and share portfolio statements provide good proof of these types of assets.

4. Proof of Identity Documents

You will typically be required to provide identification documents such as a passport, birth certificate, driver’s licence, change of name documents or tax file number so the lender can verify your identity.

5. Strong Presentation

Remember that a mortgage application is a request for a very large loan under a very formal and legally binding contract. Give these meetings the right amount of respect by showing up on time, well presented and tidy.

So, before you make an appointment with a broker or financial institution, go through your filing cabinets and start compiling copies of everything you will need for the application. And don’t be afraid to ask lots of questions!