Sam: To get approved for a home loan, you'll need to have documents to confirm your income,
identity and more.
So what documents are you going to need to have ready?
Hey guys, it's Sam from Lendi, Australia's number one online home loan platform, where
we've helped thousands of Australians apply for a home loan.
Watch this video where we'll go through the list of documents you'll need to have ready
before applying for a home loan to avoid frustrating delays and make sure you can get approved
as fast as possible.
Sam: Now, before we start, if you want great tips for home loans in Australia, make sure
you hit the bell and subscribe to our channel so you can get notified when we post new videos.
The first part is ID verification.
One of the first things that you need to do in the home loan application process is verifying
your ID and proving that you are who you say you are.
The easiest way to verify your ID is using a driver's license backed up with a passport.
However, if you are missing one of these, you can use other documents such as a Medicare
card or birth certificate.
Traditionally, you'll need to go into a bank branch or meet a broker face-to-face to verify
your ID documents.
These days, you can use an online home loan platform where you can simply upload the photos
and verify your ID online.
The second is proof of your income.
Sam: Now that you've verified your identity, you're going to need to prove that you can
afford your monthly home loan repayments.
Your borrowing power is calculated using your net monthly income and deducting your monthly
expenses.
If you're employed as PAYG, you can verify your income using two most recent payslips
and a PAYG summary.
These payslips must contain your year-to-date income and generally at least three months
of year-to-date income.
Generally, a lender will want to verify your income using two forms of documentations,
so you can also use bank statements or an employment letter to back up your payslips.
A lender will also assess other information on the payslip such as bonuses, commissions
or overtime.
For casual employees, a lender will want to see consistency with employment and will generally
want to see at least 12 months of income.
For self employed individuals, you can use your tax returns and ATO notice of assessments,
and a lender will generally want to see at least two years of income.
If you're receiving any other income such as Centerlink income or rental income, a lender
will also want to see a most recent income statement.
Sam: If you're using an online home loan platform, you can upload these documents directly, which
will save you time.
The third one is the documents required to declare your expenses.
Before getting approved for a home loan, a lender will require you to declare your monthly
expenses.
Lenders will verify your declared expenses using most recent bank statements, so it's
a good idea to review your statements before applying for a loan as it's really easy to
underestimate your everyday expenses.
The lender will require you to declare your expenses in a range of different categories
such as monthly groceries, entertainment, or childcare.
You can download these bank statements to verify your expenses using your bank's internet
banking platform, or if you're using an online home loan platform, you can generally directly
link your bank statements to the platform without even logging into your internet banking.
Sam: Next one is the documents required to verify your assets and liabilities.
When applying for a loan, you'll need to verify using documentation, some of your assets and
liabilities all depending on the loan scenario.
Assets are anything that has monetary value and a lender uses this to assess your character,
and this can impact your chances of your home loan getting approved.
If you want more information, check out our video on our YouTube channel.
Some assets that you'll need to provide documentation for could be a savings statement that you're
using towards a purchase or a rates notice to confirm ownership of a property.
Liabilities are any financial debts or obligations that you may have.
Before approving a loan, lenders will want to know if you have any existing and ongoing
debts and how long you'll be paying them off.
This is essential information to provide as the lender uses this to calculate your maximum
borrowing power and assess the risk of you being able to pay your loan.
Sam: It's essential to declare all your liabilities as if a lender finds out at a later date that
you have existing liabilities, this could increase your chance of being declined.
Generally, you'll need six months of statements for any loans such as a home loan, a personal
loan or a car loan, and three months statements for any credit cards.
The last one is extra documentation because not every loan is as simple as a straightforward
purchase or a simple refinance.
In other situations, additional documentation is going to be required such as a fixed price
building contract and council-approved plans for a construction loan and a signed contract
of sale if you're purchasing a property.
That's it guys.
All you need to know about the documents required when applying for a new home loan.
Sam: If you're looking at getting a home loan or want to decrease your monthly repayments,
jump on to lendi.com.au.
Our online home loan platform allows you to compare rates from over 35 different lenders
online and upload your documents 24/7 at your own pace without having to go into a branch.
Now, if you're looking for more helpful tips, you can join our Home Loan Hacks Australia
Facebook group where we'll answer any questions and talk all things home loans.
Finally, if you found this video helpful, please don't forget to give us a thumbs up
and add any questions in the comments section below.
If you also want more information on other relevant home loan topics, check out our videos
here.
See you next time.