Step 1 – Discover your financials
In order for us to work out how much you can borrow, we’ll need to know all about you and your financial situation. Additionally, a lender will need to know everything about your financial situation before they are prepared to grant you a mortgage. It’s not unusual for a home loan application form to take up to ten pages. Your lender will want to be certain of your:
- capacity to repay,
- financial risk,
- collateral (will the property you are buying be adequate security for the amount borrowed?),
- 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.
You will need to provide a 100 point identification check:
- A driver’s license = 40 points
- A birth certificate = 70 points
- A credit card = 25 points
- Ask us what other documentation you can use.
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 and a copy of your employment contract.
Self-employed applicants should provide their past two years’ tax returns or past two years’ financial statements and accountant’s details. Some lenders 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.
Step 2 – get pre-approval
Once we have worked out your financial situation, and determined how much you can borrow, we proceed to research loan products to find the ones that best suit your particular needs and goals. With your consent, we can get pre-approval of your loan from the lender you choose. Then you can go ahead and proceed with the property purchasing process!