Note: This post has been completely rewritten as of 20 April 2017. 

As the mortgage market turns aggressive, competitive home loan deals are available in the market in plenty. For those of you planning to plunge into the property market, apart from your credit score, getting a home loan approval also depends on how well prepared you are with your paperwork.

Different lenders have slightly different criteria regarding the prerequisites for your home loan application, but the general documents required to establish your identity and financial situation remain largely the same.

The paperwork will also differ according to the loan you are applying for. For example, you will need a different set of documents when applying for a low deposit home loan than a low-doc loan.



We have compiled a handy checklist of some of the important information you will be required to provide when you apply for a home loan. Prepare yourself in advance to increase your chances of approval and be in touch with your mortgage broker or lender for the exact information needed for your home loan:

1. Identification Documents – It is important to provide two of the following documents meeting the 100-point identification criteria.

  • Passport

  • Birth Certificate

  • Driving License

In case you don’t have any of the above documents, you can provide two of the following:

  • Citizenship certificate

  • Centrelink Pension Card

  • Medicare card

  • Utilities bill (not older than 3 months)

  • Tax assessment notice (not older than 12 months)

2. Employment Documents/Proof of Income – Lenders need proof of stable employment and income to establish how much of a risk you pose to them as a borrower. The following documents will fulfil the purpose:

  • 2 most recent salary slips

  • Payment summary or Group Certificate from employer

  • Letter from the employer mentioning the tenure of service

  • Latest tax return (for past 3 consecutive years in case of self employed individuals)

If any of the above is not available, you may also provide:

  • A letter from the employer confirming previous employment

  • Salary slip dated 3 months before your latest salary slip to show stable employment for 3 months

  • Latest tax return and assessment notice

3. Proof of other income:

If you have rental income, provide the following information to substantiate it:

  • A copy of signed lease agreement and the recent rental agreement

  • Bank statement showing rental credits for the last 3 months

  • Latest tax return for the period

Include relevant documentation to support any other income such as income from interest, pension, superannuation, foreign income or any other. 

Pro tip: Lenders will appreciate if you furnish the details of any existing loans and your approximate living expenses.

4. Other Documents – Apart from identification and employment proofs, collect the following documents as well:

  • Bank statements showing evidence of deposit and at least 6 months of genuine savings

  • Proof of assets and other investments

  • Copy of the contract of sale for the property (specific pages of the contract must be attached depending on your State)

  • For construction loans, copy of the building contract or tender and council approved plans must be provided

  • Declaration letter to substantiate any funds gifted for the purchase

  • Copies of most recent credit card statements mentioning the credit limit

While the above mentioned documents cover the most basic information lenders will ask you to provide, if you are applying for a special kind of home loan, you might need the following extra documents as well:

5. Self-Employed Borrowers

Loans are available for self-employed personnel at competitive interest rates through several lenders. While your mortgage broker will guide you to these lenders, keep the following documents handy in lieu of the regular income proofs required for a regular home loan:

  • Self certified income statements or business activity statement (BAS) for at least 12 months

  • Registered business name and ABN

  • Tax assessment by ATO for the past 3 years

6. Refinancers

Low interest rates in the market provide a potential opportunity to several home owners to refinance their home loan to a lower rate and save on monthly repayments. Read this refinancing guide for more information and collect the following information if you intend to refinance your home loan:

  • Bank statements for past 6 months substantiating the existing mortgage and other personal loans

  • All relevant documentation for the existing home loan

  • Latest credit card statement or statements for past 6 months if there is an existing debt on the credit card

  • Building insurance policy and latest Council Rates Notice for the property being refinanced

7. Investors

Banks have become stricter while lending to investors and being prepared in advance will increase your chances of approval. You will need these extra documents when you apply for an investor home loan:

  • Proof of expected rental income

  • Council Rates Notice for already owned investment properties

  • Tenancy agreement and rental statements for existing investment properties

8. First Home Buyers

  • First Home Buyers can take benefit of State Grants or FHOG. In case you are a first home buyer eligible for the grant, do not forget to attach the completed FHOG application form with your documents.

9. Low Deposit Home Loans

If saving a 20% deposit is holding you back from purchasing your property, you can either choose to pay Lenders Mortgage Insurance or have a guarantor back your loan. A guarantor must provide the following documents:

  • Identification proof of the guarantor (as listed for the borrowers in the beginning of the checklist)

  • Council rates notice for the property to be used as guarantee

  • Documentation for any existing loan on the property

Apart from collecting the information required by banks before approving your home loan, follow these points to go about your purchase in an organised way:

  • Pull out your credit report for free from websites such as Veda and check it thoroughly

  • Dispute any incorrect entries immediately

  • Maintain a healthy credit score by following these tips

  • Collect all the essential documents mentioned in the checklist

  • Have your deposit money ready in the bank with bank statements substantiating it

  • If your parents or relatives have gifted you the deposit, keep a letter confirming the gift handy

  • Compare mortgage rates online before making a decision

  • Apply for a home loan pre-approval and start looking for properties only after you receive the pre-approval.

Financing a property can be complicated unless you are guided by experts. Verified mortgage brokers at HashChing not only guide you throughout the process of financing but also offer you pre-negotiated home loan rates that you can compare online. 

Get more out of your property by partnering with HashChing, an online marketplace dedicated to providing the most competitive service and home loans to property buyers in Australia.


By Vidhu Bajaj



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