Fast-track your journey from mortgage enquiry to unconditional approval with our comprehensive mortgage loan application checklist. Applying for a mortgage is a long and complex process, involving everything from credit and reference checks to verification of employment and income.
To ensure that you have the best chance of getting your loan approved, we’ve compiled a checklist of some of the information a lender may require when assessing your mortgage application. Remember that requirements vary between financiers, so confirm the exact documentation you need directly with your lender or mortgage broker.
Information
- Full employment history
- Current and previous addresses
- Details of your current assets – car, motorbike, boat, collectibles etc
- Your income and outgoings
Employment documentation
- Current records of your salary
- Latest tax return/notice of assessment
- If self-employed, three years’ worth of tax returns
- A letter from your employer stating the tenure of your employment
Other documentation
- ID – proof of identity which includes at least one form of photo ID.
- Copies of recent credit card statements, confirming your credit limits
- Completed application for First Home Owner Grant
- Front page of the sales contract
- Six months’ worth of bank statements, to confirm genuine savings pattern
- Statutory declaration stating that funds gifted for the deposit do not need to be repaid (if applicable)
- Council rates notice for any properties you own, such as investment properties
- If purchasing an investment property, confirmation of rental income for the property (real estate agency letter)
Top tip: If you plan to reduce your credit card limit to improve your borrowing power, make sure you request the reduction with your card provider at least a week prior to applying for the loan. As you need to provide evidence of the decrease to the lender, this allows time for the card provider to send you written notice of your new credit limit.
Costs of buying
First homebuyers are often shocked at the number of expenses involved in buying a property – from legals and bank fees to government charges, the costs add up.
As a general rule, you should budget for around 5-10% of the purchase price to be spent on acquisition expenses. These costs vary, but the following checklist covers most of the common expenses:
Type of cost | Cost |
| Valuation fees | $200-450 |
| Conveyancing fees | $1,000-2,000 |
| Lender’s solicitor’s fees | $250 |
| Loan application fee | $300-600 |
| Annual package fee | $400 |
| Stamp or transfer duty | Concessions often apply for first homebuyers – otherwise, can cost up to 5% of the purchase price |
| Lender’s mortgage insurance | Varies – it is charged on all mortgages when the loan to value ratio is higher than 80% |
| Mortgage Stamp Duty | Varies – not applicable in all states and territories, and is directly proportional to the size of your loan |
| Government charges (registration of transfer of land, registration of mortgage etc) | $500-1,500 |
Click here for a printer friendly version of our Mortgage Documentation Checklist.
