Before approving your home loan, any lender will need to be confident you can pay it off. So they have a checklist of criteria you must satisfy.
Below is a discussion of the more common requirements. Of course, the requirements vary from lender to lender, so it’s impossible for us to cover everything here; this information is a guide, not a prescription.
Most lenders require a deposit of some sort before they’ll give you a loan. So, naturally, if you have savings you can put towards a deposit, you’ll find it easier to get a home loan.
But many lenders need more than just a deposit. They also need to know you’re capable of making regular home loan repayments. The best way to prove this is to start putting a regular amount of money aside each month, before you apply for a home loan. This will dramatically improve your chances of approval.
Most lenders require you to have been in your current job for a minimum of 3-6 months. It will also help your home loan application if you have worked in the same industry for a number of years. Generally speaking, the more steady and reliable your income, the more likely your loan will be approved.
If you’re self-employed
If you’re self-employed, most lenders will need to see two years’ worth of your personal and business tax returns before they’ll consider offering you a home loan. All lenders will want to see your ABN registration and sometime your GST registration but not all lenders. We have a number of low doc loans available for self-employed applicants, which require less in the way of business financials.
All banks will require 100 points of ID to be supplied for verification.
3 months current loan statements of all debts.
Two current payslips and current group certificate / tax returns.