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:
- 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.
- 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.
- 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
David Johnson – The Home Loan Guy
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