Home loan application: process, documents and advice

Get all the documents you need and understand the home loan application process so you can get a mortgage when you need it.

If you’re trying to get a home loan, you can speed up the process by having everything organised before you apply. Along with your application, you’ll need to make sure you have all your supporting documents in order.

This guide will help you put together your supporting documents and get your home loan approved as quickly as possible.

What is the home loan application process?

  1. Application. Compare, find the right mortgage and apply.
  2. Conditional approval. Your lender assesses your basic eligibility and give you a rough idea of how much they will lend you. This is subject to a property valuation.
  3. Verification and credit check. The lender checks that all the documents you've provided are correct.
  4. Valuation. A professional valuation of the property is required before your lender will approve the loan.
  5. Full approval. The lender approves your loan and you're ready to settle.
  6. Settlement. The contracts are signed, the mortgage fees are paid and the title is exchanged. Enjoy your new home.

Your home loan application needs to come with supporting documentation. Make sure you have the following:

  • Identification documents
  • Proof of income documents
  • Asset and liability documents
  • Extra documents (for guarantors, bad credit borrowers and other unique cases)

Let's look at these documents in more detail.

Identification documents

Any lender you go through will have identification requirements. This means you’ll have to provide 100 points of ID in the form of either two primary identification documents or one primary and one or more secondary identification documents. The tables below outline what documents are considered primary and secondary options, and how many points they are worth.

Primary documents

Birth certificate70 points
Name change certificate70 points
Current passport70 points
Expired passport that was not cancelled and was current within the preceding two years70 points
Citizenship certificates70 points
Diplomatic documents and official documents issued to refugees70 points

Secondary documents

Driver’s licence40 points
State or Territory issued photo ID card40 points
Photo ID issued by tertiary education institute40 points
Photo card issued by banking institution where you have been a customer for at least 12 months40 points
Public service ID card including your photo and signature40 points
Licence or permit issued by State, Territory or Commonwealth government, such as a boating licence40 points
Letter confirming your identity from referee you’ve known for at least 12 months40 points
Mortgage documents35 points
Council rates notice35 points
Credit card statement25 points
Foreign driver’s licence25 points
Medicare card25 points
Credit card (must have name and signature)25 points
Utility bill with name and current address25 points
EFTPOS card (must have name and signature)25 points

If you can’t produce 100 points of identification using the documents above, talk to your lender or mortgage broker as there might be other forms of documentation you can use. There are also some scenarios where you may not need to provide identification documents. For example, if you’re applying for a home loan from a lender with which you already have a transaction account, personal loan, savings account or other products, you will have already gone through the identification process and may not have to do it again.

Proof of income

You can prove your income in different ways depending on your employment circumstances. If you’re a PAYG employee, the process is relatively straightforward. If you’re a casual worker or are self-employed, however, you might need a different set of documents.

PAYG employees

As a PAYG employee, you’ll have to provide a recent payslip (in most cases no older than two months) stating your year-to-date (YTD) income. Some lenders might ask for multiple payslips, so check each individual lender’s requirements. If you can’t track down your recent payslips, most lenders will also accept the past three months’ worth of bank statements showing your salary going into your account. Some lenders will also accept an employment contract and letter from your employer stating your current base wage, or a tax return that’s prepared by a tax agent.

Casual workers

If you’re a casual worker, you’ll need to provide last financial year’s notice of assessment from the ATO.

Self-employed

Self-employed borrowers generally need to seek out low documentation, or low doc, loans. This term can be somewhat misleading, as the amount of documentation you need is not generally less than with traditional home loans. You just need to produce different documentation. Instead of PAYG statements, you can provide your lender with your most recent notice of assessment from the ATO. Lenders will also want to see tax agent prepared business and individual tax returns from the last financial year. Some lenders might also accept a letter from your accountant or a Business Activity Statement (BAS).

Multiple incomes

If you have multiple forms of income, you’ll have to provide documentation for each source. The type of documentation required will depend upon the type of income.

  • Rental income. This can either be current income or, if you’re buying an investment property, proposed rental income. If you want existing rental income to be considered on your loan application, you’ll need a current lease agreement, a current bank statement showing identifiable rent payments for the past three months. If you’re listing proposed rental income, you’ll need a statement from a property manager or real estate agent giving details about the property and its proposed rental income.
  • Shares. Shares can also be included as income in your loan application. You’ll need your shareholding statement, a letter from your financial planner, a recent bank statement showing direct credits from your investment, or your most recent tax return.
  • Centrelink income. Some Centrelink benefits can be considered as income on a loan application. For a full rundown of the benefits you might be able to list as income, check out our guide. To document Centrelink income, you’ll need a current Centrelink statement or a recent bank statement clearly showing direct credits from Centrelink into your account.

Assets and liabilities

A lender will not only want to see your income, but also your assets and liabilities in order to assess your full financial position. This will give them a better idea of whether or not you’re a credit risk. Put simply, assets are anything you own, while liabilities are anything you owe.

  • Assets

Assets could be other properties, vehicles, term deposits or high interest savings accounts. You’ll need to provide documentation, such as your vehicle registration or any relevant bank statements, for each asset you list on your application.

Details about your assets are important because lenders want to see that you have enough money for a deposit and have a history of genuine savings. You’ll also need to provide your potential lender with bank statements if your savings account is with a different financial institution. When it comes to a deposit, most banks require proof of six months’ worth of genuine savings, so it’s wise to bring along at least your last six bank statements.

  • Liabilities

Liabilities are any outstanding debts or ongoing payments for products such as personal loans, vehicle loans, credit cards or store cards. You’ll need to bring statements that show the current outstanding balance for each liability. For credit cards and store cards, you can provide your most recent statement. For loans, you should provide your last three statements.

Extra documents

Here are a few other documents you might want to provide depending on your situation.

  • If you’re an eligible first home buyer, it will help to have your First Home Owner Grant application completed. To see if you might be eligible, check out our guide.
  • If you’re applying for a home loan with a guarantor, your guarantor will also have to provide all documentation for their identification, income, assets and liabilities.
  • If you already have insurance on the property, you’ll want a copy of your insurance policy.
  • If you’ve already had a valuation done on the property, have the valuation report at hand.

While documentation requirements vary from lender to lender, being prepared will make your home loan application process smoother in the long run.

More questions about applying for a mortgage

Here are a few common questions many borrowers have about the home loan process.

How long does it take to process a home loan application?

Most lenders can process a home loan application in a matter of days, provided your documentation is all in order. However, if you're talking about the time between application and settlement you're talking a four to six weeks, according to most lenders.

Is there a way to speed up my application?

Getting all your paperwork together in advance is the smartest way to avoid delays. But if you really are in a hurry then this guide to fast home loan application is a good start. And there are also some online lenders like Tic:Toc who offer very fast digital applications that can take minutes rather than days.

Can I apply for a home loan completely online?

You can. There are many online lenders in the market who only offer online service and don't have physical branches. You can compare their products and learn more on this page.

Keep in mind that some parts of the home buying process, such as dealing with a conveyancer, typically require a face-to-face meeting.

What do I do if my application gets rejected?

This does happen. The trick is not to panic. Instead you need to work out where you went wrong and take the necessary steps to have a solid application next time.

Application rejected? Here's what you need to do

Compare home loans or speak to a broker

Rates last updated October 18th, 2018
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.
3.64%
3.66%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
3.69%
4.86%
$0
$395 p.a.
90%
Special discounted rate for first home buyers. Start your home buying journey with 2 years of fixed repayments at a competitive rate plus package discounts. Available with a 10% deposit.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Get double Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.59%
3.62%
$0
$350 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable interest rate product aimed at refinancers looking to switch to a lower rate.
3.79%
3.80%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
3.69%
4.12%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.75%
3.75%
$0
$0 p.a.
70%
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn double Velocity Frequent Flyer Points on your mortgage for a limited time (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.79%
3.82%
$0
$0 p.a.
80%
A variable investor mortgage with a high borrowing amount so you can fund a large purchase.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.84%
3.85%
$0
$0 p.a.
70%
Keep your LVR at 70% or below and enjoy a special discounted rate. Also, pay no application or ongoing fees.
3.64%
3.59%
$0
$0 p.a.
80%
Fast, 100% online application process. Very limited fees. Optional offset account (with fee).
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.80%
3.80%
$0
$0 p.a.
70%
Earn tens of thousands of Qantas Points or more with this variable owner occupier mortgage. Requires a 30% deposit.
3.71%
3.71%
$0
$0 p.a.
70%
A variable rate home loan that has a lot of flexible features. This loan has a 100% offset account.
3.88%
3.89%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.85%
3.85%
$0
$0 p.a.
80%
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan. Split and redraw facilities included.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.64%
3.64%
$0
$0 p.a.
70%
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.87%
3.91%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.79%
4.67%
$0
$349 p.a.
90%
A package home loan with a sharp fixed rate and a 10% deposit option for low deposit borrowers.
3.70%
3.90%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.72%
4.10%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan. Bonus $1,500 cashback for refinancers.
3.59%
3.58%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.99%
4.13%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with no application fee.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.84%
3.82%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.89%
3.94%
$0
$0 p.a.
80%
Pay no application or ongoing fee and borrow up to 80% LVR.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Borrow up to $500000 and earn Velocity Frequent Flyer Points (terms and conditions apply).
3.75%
4.00%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.88%
4.89%
$0
$395 p.a.
95%
Low deposit home loan. Enjoy flexible repayment options while paying limited fees.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.76%
4.15%
$0
$395 p.a.
90%
A high maximum LVR home loan with redraw facility and additional payments. Get this mortgage with a 10% deposit.
3.67%
3.69%
$0
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.93%
3.94%
$0
$0 p.a.
80%
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.99%
5.35%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
3.99%
3.99%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio.
3.89%
3.94%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
4.13%
4.14%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.72%
3.72%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
3.94%
4.95%
$595
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying and pay no application or ongoing fees.
3.74%
4.01%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
3.69%
4.54%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150k receive a discounted rate. NSW, QLD and ACT residents only.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
4.29%
4.26%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.

Compare up to 4 providers

Aussie Home Loans Logo

Enter your details below to receive an obligation-free quote from an Aussie home loans expert today

By submitting this form, you agree to the Finder Privacy and Cookies Policy and Terms of Use

Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie IQ and Aussie Optimizer products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 ("Aussie"), and its appointed credit representatives. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133 Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Optimizer products is provided by Perpetual Limited ABN 86 000 431 827 (Lender). Credit for Aussie IQ is provided by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502. Home loans issued by the Lender are serviced by Macquarie Securitisation Limited ABN 16 003 297 336, Australian Credit Licence 237863 (MSL).

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the finder.com.au Privacy and Cookies Policy, Terms of Use, Disclaimer & Privacy Policy and the Aussie privacy policy.

Aussie Home Loans is both a lender and a mortgage broker, and offers a range of services.

  • FREE Suburb and Property Report with every appointment.
  • Access 3,000+ loans from over 20 lenders.
  • Get expert help with your loan application, including paperwork and eligibility.
  • Over 1000 brokers who are able to help you in your local area.

Aussie Home Loans Lender Logos

The Adviser’s number 1 placed mortgage broker 5 years running (2013-2017)

Image: Shutterstock

Adam Smith

Adam has more than five years of experience writing about the Australian home loan market.

Was this content helpful to you? No  Yes

Related Posts

Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.
Ask a question
Go to site