A new home is a serious investment, so to make sure everything is safe and secure, for you and your lender, some documentation is all part of the process.
“The initial meeting with our clients is crucial. Getting an intimate understanding of all personal and financial information is fundamental for us to provide quality advice and to ensure we deliver our service in a timely and efficient manner.” - Craig Baumanis, Director, Voyage Wealth.
The information you’ll need to provide
When you engage the services of a broker, and depending on the lender you choose, you will be asked for some or all of the following documentation:
- Identification – either driver’s licence or passport / or both
- Recent payslips
- PAYG summary
- A notice of assessment from the Australian Taxation Office
- Tax returns
- Evidence of savings or deposit statements
- Purchase contracts for a home loan, including building contracts, or plans if building
Why is this information important?
Having a detailed and clear picture of your current situation and financial position will ensure the broker can match you with a lender that will likely approve your application. If something is not disclosed and is outside of lending policy then there is a high likelihood that the application will be declined.
Will a bank ask for the same documentation?
Borrowers may be able to avoid some of the paperwork by applying for a loan with their existing bank. However, this means being limited to the range of offerings in the market and risking missing out on a great deal.
A broker has access to a wide range of banks and lenders across Australia, meaning they are generally able to find a loan that meets the borrowers' needs and current situation. Lending policies and pricing vary greatly in the market, and it’s the broker’s job to identify the best loan for the client’s circumstances.
Saving you time and money
An experienced broker can usually tell a prospective client in the first meeting whether they have a chance of having a loan approved. With a vast range of loan products available a broker can generally find a loan product that suits their clients’ needs.
Many brokers are able to gain access to client’s credit files which is extremely important as banks rely on this information to assess the overall risk of the client. Having this information upfront can save a lot of time and money, and can allow the broker to provide valuable information and advice if items in the credit file need to be addressed, such as a default.