Home Loans

All lenders are likely to ask for the same information. If you’re approaching a lender for the first time you’ll need to be “identified”. When you apply for a home loan you have to show identification up to the value of 100 points. A driver’s licence earns 40 points, a credit card can earn 25 points and a birth certificate 70 points. Only original document qualify. 

It’s not unusual for an application form to take up to ten pages. Your lender will want to ascertain your:

• capacity to repay

• financial risk

• collateral (will the property you are buying be adequate security for the amount borrowed?), and

• existing assets.  

You will also be asked:

• if you have dependent children

• how long you have lived at your current address

• what you owe and own

• your personal insurances, and

• your credit card details.  

It is advisable to have:

• your two most recent pay slips

• group certificates for the past two years, and

• documentation from your employer detailing income and length of employment.

Self-employed applicants should provide their past two years’ tax returns or past two years’ financial statements and accountant’s details. Some institutions may even ask for a profit and loss statement certified by a registered accountant.  

Also needed are:

• savings details

• bank statements including transaction, saving or passbook accounts

• investment papers including managed funds or term deposits

• what you owe and own

• details of personal loans, credit cards or charge cards, and

• tax liability if self-employed.  

Details of life insurance policies and superannuation as well as approximate value of other assets such as furniture and jewellery should also be included. 

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