Mortgage Broker – Established Residential Investment & Home Loan Specialist

Documents Required Checklist

Hello, Nathan here and welcome to my Documents Required Checklist web page.

By clicking this link it will open another page that you can then download the Documents Required Checklist page that you can then print out or save to file and use as a quick reference. Click here to download my Documents Required Checklist.

Documents Required Checklist – Identification

Every lender I have worked with in the past requires at least 1 photo identification, for example:

  • Driver’s License
  • Passport
  • Proof of Age Card (18+ Card)

The actual details they are trying to gather besides your photo is:

  • Your Full Name
  • Current Living Address
  • Date of Birth

When the lender conducts a Credit File check these are the details that are displayed and they can all be confirmed with your Driver’s License, so why do lenders ask for multiple documents? Put simply, one document can confirm the details of the other.

If you don’t have a driver’s license I highly recommend that you get yourself a Proof of Age Card, regardless of your age because it confirms your full name and date of birth. If you don’t have a Passport you can provide your Birth Certificate. Both of these documents confirm your full name, your date of birth and where you were born. Unfortunately a Proof of Age, Passport or a Birth Certificate do not detail your current living address.

If you don’t have an up to date sticker on your Driver’s License with your current address, go get one but if you don’t have a Driver’s License the easiest way to prove your current address is with a current telephone/mobile phone bill, electricity bill, savings account statement, credit card statement, PAYG Summary or an ATO’s (Australian Tax Office) Notice of Assessment.

The other documents I always ask of my clients for is a copy of their Medicare Card, which many of the times details the names of your children. As you can see the information collected all builds a picture about you and who you are.

The most common type of borrowers are individuals who are either Australian Citizens or those who have Permanent Residency. If you have a foreign passport, additional documentation will be required to prove your Permanent Residency.

The 3 most common documents I ask from all of my clients to prove their Identification are:

  • Driver’s License
  • Passport
  • Medicare Card

Documents Required Checklist – Income

The most common sources of income are:

  • PAYG Income – where your employer pays your Superannuation, pays your Taxes then pays you the remaining
    • Employer Maternity Leave Payments (50%)
    • Fully maintained Company Car – up to $4,000 per year
    • Car / Vehicle Allowance (100% used if proved on the Pay Slip)
    • Bonus Income that is consistant over a 12 to 24 month period
  • Self Employed – where you have a Gross Income from the product or services you provide, less any expenses incurred to generate your income leaving you with a Net Business Taxable Income that is submitted to the ATO who then confirms how much Tax you have to pay. In many circumstances the Self Employed do NOT pay anything into their Superannuation
  • Commission Only – for example if you are not being paid a retainer from your employer, instead you only receive income after you have made a sale, like a Real Estate Agent or a Car Salesman.
  • Child Support / Allowance – only if there is 5 years remaining, meaning your children are aged 12 or less
  • Rental Income – income received from owning a rental property (80%)
    • Ever lender will usually only use 80% of your gross rental income because 20% is used to cover things like:
      • Managing Agent Expenses
      • Council and Water Rates
      • Building Insurance OR Strata Insurance
      • Landlord Protection Insurance
  • Investment Income – Interest or Dividends that have been consistent over a 2 year period
  • Government Benefits Income – which includes:
    • Family Tax Benefit Part A & B – only if there is 5 years remaining, meaning your children are aged 12 or less
    • Aged Pension, Disability Pension, Veteran Affairs Pension, War Widows Pension or Carers Pension
    • Government Paid Parental Leave Payments (50%)

As you can imagine the documents required to prove each type of income varies but a good guide is:

  • PAYG Earners:
    • Last 3 consecutive Pay Slips
    • Last 2 years’ worth of PAYG Summaries OR ATO Notice of Assessments
  • Self Employed or Commission Only:
    • Last 2 years’ worth of Business and Personal Tax Returns
    • Last 2 years’ worth of ATO Notice of Assessments
    • Last 2 years’ worth of Business Financial Statements, e.g. Profit & Loss and Balance Sheet etc.
  • Government Income:
    • Last 2 Centrelink Statements
  • Child Support / Allowance:
    • Copy of the signed Agreement
    • Last 3 months’ of Savings Account Statements confirming the receipt of the income
  • Rental Property:
    • Last 2 Managing Agent Statements
    • Private Rentals:
      • Copy of the Lease Agreement
      • Last 3 months’ worth of Savings Account Statements detailing the receipt of the income
  • Investment Income – Interest & Dividends:
    • Last 2 years’ worth of Tax Returns
    • Last 2 years’ worth of ATO Notice of Assessments

Documents Required Checklist – Proof of Assets

Every lender is trying to understand how much you are worth by adding up your Assets (Assets that may go up in value) and then deducting your Debts (Liabilities). You are required to prove your Assets by way of:

  • ALL Savings Accounts:
    • Latest Statement
  • ALL Superannuation Accounts:
    • Latest Statement
  • ALL Property Assets:
    • Latest Council Rates Notice
    • Latest Water Bill (if applicable)
    • Latest Building/Landlord Insurance Statement (if applicable)
  • Other Assets:
    • Latest Share Portfolio/Managed Funds Statement

Documents Required Checklist – Proof of Debts

When a lender requrests statements regarding your debts, they are interest in ‘financial’ debts that include:

  • ALL Property Loans:
    • 6 months’ worth of Statements up to the current day (no more than one month old at the time of submitting your application)
      • This may include 1 Statement and the remaining transactions by way of an internet summary
  • ALL Credit Cards/Store Cards:
    • Latest Statement
      • If you are consolidating the Credit Card into the Home Loan you need to provide the last 3 months’ worth of Statements
  • ALL Car/Personal Loans:
    • Copy of your Agreement/Contract that details the limit and your minimum monthly repayment
    • Latest Statement – confirming your ongoing repayment amount
      • If you are consolidating the Car/Personal Loan into the Home Loan you need to provide the last 6 months’ worth of Statements
  • Lease/Hire Purchase:
    • Copy of your Agreement/Contract
    • Latest Statement – confirming your ongoing repayment amount
  • ATO Tax or HECS/HELP Debt:
    • Current copy of the Debt Payment Summary
    • Call the ATO on 13 28 61 with your Tax File Number handy and request this information to be posted to you (may take a couple of weeks)
  • Other Financial Debts like – Child Support, Interest Free Loans, Rentlo Agreement or Overdraft:
    • Current copy of the Agreement/Contract
    • Latest Statement – confirming your ongoing repayment amount
Documents Required Checklist – First Home Buyers

In addition to the standard Documents Required Checklist, if you are a First Home Buyer or you need to make amendments to the names on the Title there are some additional documents required, like:

  • Marriage Certificate witnessed by Landgate (WA)
  • Genuine Savings:
    • Last 3 months’ of the Savings Account Statement
  • Gifted Funds:
    • Statutory Declaration from the giver and receiver of the funds
Documents Required Checklist – Statement Requirements:

I have been a Mortgage Broker since October 2005 and the hardest part of the Home Loan transaction is the collection of the items on the Documents Required Checklist, in particular Bank Statements. A Bank Statement must include:

  • The Banks Name or Logo
  • Your Name and Address
  • Your Account Number
  • The Running Balance

You would think that the Banks make these documents easy to obtain but we must remember, Banks are in the business of making money, which does not include making your life easy or providing exceptional service. To obtain the exact information required may require a number of documents, for example:

  • You need a minimum of 6 months’ worth of Home Loan Statements including the current month but the Statement is only made available every 6 months, what do I need?
    • I need that last Statement and
    • I need a Transaction Summary from that Statement up to the current day

And sometimes, when we have provided ALL of the documents required on the checklist, the lender will ask for more!

To get yourself a simple 1 page print out of my Documents Required Checklist, simply click here.

Best wishes for now

 

Nathan Daniell
Simplify Your Mortgage Pty Ltd
Australian Credit License Number: 387974

P.S. Thank you for visiting my Documents Required Checklist web page, I hope it helps you to understand the information every lender will want to see when making your loan application.