Applying for a home loan shouldn't feel like you're scaling Mount Everest with a filing cabinet strapped to your back. We've broken down exactly what documents you need to fast-track your mortgage application process, whether you're a first-time buyer, refinancing, or investing.
Why you need to get your documents in order
Let's face it – nobody enjoys paperwork. But when it comes to securing your dream home, having your documents organized isn't just helpful – it's essential.
According to recent data, mortgage applications with complete documentation at the first meeting are processed up to 30% faster than those requiring follow-ups. That could mean the difference between snagging your dream home or watching someone else move in.
Mortgage document checklist
Income proof
Helping you “show lenders the money”.
- Employed PAYG:
- Your two most recent payslips (ideally showing company name and YTD figures)
- Most recent PAYG payment summary/group certificate
- Self-employed:
- Last two years of personal AND business tax returns
- ATO assessments for the same period
- Other income sources:
- Rental income statements for investment properties
- Proof of share dividends or interest earned
- Centrelink confirmation letters for family tax benefits or pensions
- Private pension statements
- Documentation for any other regular income streams
Identity verification
The “you are who you say you are” proof.
Primary ID (one of these):
- Current passport
- Birth certificate
- Driver's license
Supporting ID (may need several):
- Medicare card
- Credit/debit cards
- Council rates notice
- Pension cards
- Health care cards
- Student ID
Pro tip: If any documents are in your maiden name, you may need your marriage certificate too.
Scenario-specific documents
First home buyers
- First Home Saver Account statements (if applicable)
- Evidence of gift funds (Statutory Declaration if money is being given to you)
- Most recent credit card statement
- Copy of the Contract of Sale for your prospective property
Refinancers
- Documentation on your existing loan (start date, term, early exit penalties)
- Last six months of statements for existing home and personal loans
- Current council rates notice
- Building insurance policy
- Last six months of credit card statements (or most recent if no debt)
Current homeowners buying again
- Last six months of existing home/personal loan statements
- Most recent credit card statement
- Contract of Sale for the property you're buying
- Six months of savings/investment history
- Evidence of additional funds (including Statutory Declaration for gifts)
Investors
- For existing investment properties:
- Rental income evidence
- Copy of tenancy lease
- Council Rates Notice
- For new investments:
- Contract of Sale
- Property manager letter indicating likely rental income
Construction loan seekers
- Copy of builder's fixed price tender with specifications
- Council-approved plans
Why these documents are important
You might be thinking, "Does this lender really need to know everything about my financial life?" The short answer is: pretty much, yes.
Lenders have tightened their requirements significantly since the banking royal commission. Having complete documentation helps us present you as a rock-solid applicant and secure you the best possible interest rate.
Common document watch-outs
Even the most organised applicants can hit snags with their documentation. Here are the top issues we see that delay mortgage approvals:
Bank statement problems
- Missing pages: Most lenders require complete statements, including the fine print. Screenshots or partial downloads can result in rejection.
- Transaction explanations: Large or unusual deposits may need explanations and supporting evidence. Be prepared to explain that $5,000 cash deposit from three months ago.
- Overdrafts and dishonors: Frequent overdrafts or bounced payments are red flags to lenders. Try to maintain a clean banking history for at least 3-6 months before applying.
Income verification issues
- Payslips too old: Lenders typically want payslips less than 30 days old. Last month's statement might not cut it.
- ABN/business registration mismatches: Self-employed applicants need consistent business information across all documents.
- Contract work complications: If you're on contracts, lenders may want to see a history of renewals or consistent work in your field.
Credit history surprises
- Unknown defaults: Check your credit report before applying. Even small forgotten bills can create major headaches.
- Buy Now Pay Later accounts: Many applicants don't realize these services can impact your borrowing capacity, even when paid on time.
- Multiple recent credit inquiries: Shopping around for loans or credit cards can temporarily lower your credit score.
Identification documents
- Non-Australian ID: If you only have an international source of identity verification, some lenders may find this difficult to process.
- Out of date ID: Check your ID to confirm that it’s valid and in-date.
Pro tip: Many of these issues can be addressed proactively with the right strategy. That's where having an experienced broker in your corner makes all the difference.
