What documents will you need for a mortgage?

When you’re looking to become a homeowner, we know you’d rather be spending your time finding that perfect property, instead of worrying about the paperwork you’ll need for your home loan. Financing your new home is a critical step towards getting on the property ladder. So with our 5-step guide to getting document-ready, you can take care of these important tasks as quickly as possible.

Documents you’ll need for a mortgage application can vary from lender to lender, but you’ll usually need the following:

To identify who you are you will need your current passport, original birth certificate, driver’s licence and in some cases, your Medicare card.

For a lender to assess your ability to pay back a loan, they will use your gross and net income minus your regular expenses to determine your borrowing power. To show your income, you’ll need to share details of your employer, two recent consecutive payslips, and your previous employer if you’ve been in your current job for less than one year.

Make sure the information you’re sharing shows any regular overtime, bonuses and allowances you earn. If you’re a casual employee or are self-employed you will need additional documentation.  

Most lenders will use your bank statements to calculate your expenses. They’ll ask you to declare your monthly expenses on things like:

• Basic housing & property
• Investment property
• Medical and health
• Childcare, school fees and other education services
• Insurance premiums
• Groceries
• Clothing and personal care
• Recreation and entertainment
• Transport
• Phone, internet and pay-TV.  

Reviewing your bank statements can help you to get a clear idea of how much you’re spending. Knowing where your money is going is an important step towards freeing up more income to put towards your mortgage repayments.

Owning multiple assets can assist you in securing a mortgage, as it allows lenders to see your current wealth and ability to draw on these assets should you ever need to, to service your loan with them. You will be asked to declare and provide details of any:

• Vehicles you own (including cars, boats, trailers)
• Savings accounts
• Other properties you own
• Superannuation balances
• Home contents total value
• Shares
• Details of any property you are offering as security – address, certificate of title details, contract of sale and contacts at that property (if not your own).

Getting this information ready in advance can help a lender get a quick and accurate picture of your financial position.