29 October 2013
29 October 2013,
 0

Number 1: Drivers Licence

  • This verifies your Full Name, date of birth, address, photo & signature
  • Make sure if you are taking a copy it is clear and all details are legible

 

Number 2: Supporting Identification

This can be satisfied by one of the following:

  • Passport
  • Birth Certificate
  • Marriage certificate (especially if you have changed your name)
  • Citizenship certificate
  • Council or water rates notice
  • Recent Bank statement (not an internet one)
  • Australian Tax office Assessment notice

 

Number 3: Income verification

  • If you are working for someone else the normal requirement is 2 most recent pay slips
  • They need to be computer generated, not hand prepared.
  • Preferably they show year to date income as well as your regular pay.

Self employed?

  • then you need to provide the most recent 2 years tax returns

 

Number 4: Supporting Income verification

  • Normally in the form of a Group Certificate/ Payment summary issued form your employer in July each year.
  • If you are paid consistent overtime or regular bonus income then you may need to supply 2 years as evidence.

Self employed?

  • Then you need 2 years tax assessment notices issued from the ATO

 

Number 5: Evidence of “Genuine Savings”

If you are buying your First Home then this applies to you…a bank wants to see that you can demonstrate a commitment to buying a home, not just the ability (ie you have enough income).

  • Most banks will need to see you verifying either 3% or 5% genuine savings (being 3% of the purchase price).
  • You may have more savings than this, but this will be their minimum requirement and if you cannot show this you may need to look at different options…

 

Number 6: Evidence Deposit

If you are a fist home buyer you have already supplied this above…

The bank refers to this as ‘Funds to complete’ they will not approve a loan for you if you do not have sufficient money in the bank.

You can demonstrate this by way of:

  • Bank statement showing your savings.
  • Gift letter from your parents saying they are helping you out with a certain amount of money.
  • If you are selling your old home then they will want the Contract of Sale to show the sale price PLUS a home loan statement to see the balance.
  • If you already own a home you and using the equity
    • You need to provide home loan statements  PLUS the bank will do a valuation on the home to work out its value.
    • You evidence your “savings” by demonstrating you are good at paying your existing home loan.

 

Number 7: Contract of Sale

  • When your offer has been accepted the next step is to sign the contract and send this to your broker or Credit Advisor
  • the contract will show
    • your full names (make sure your middle name is included)
    • Purchase price
    • Deposit required

 

Number 8: Contact details for your conveyancer

  • The bank will need to contact your solicitor to coordinate the settlement
  • This should be included on the Contract of sale, however if you do not have the details available at the time you sign the contract it is often missed.
  • So if you are going to the Real Estate Agent to sign the contract, make sure you take these details with you.

 

Number 9: Council Rates notice – If you are refinancing

  • This is required as it shows that you are the registered owner of the home
  • In addition to the street address your home will have ‘title details’ – his is normally a lot number & either DP number (deposited Plan) or SP number (Strata Plan) for a unit
  • Sometimes the registered address is different to your street address

 

Number 10: most recent 6 months home loan statements – again only if you are refinancing

  • In addition to showing the balance of the loan – but you also need to demonstrate that you are good at repaying your loan and have not missed any payments
  • A new bank want to make sure they are getting a good customer, not one that has missed payments and will create work for them

 

Cheers

David Johnson – The Home Loan Guy

connect on Linked in – www.linkedin.com/davidvjohnson

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