There’s a good reason why three out of every four new home loans in Australia are arranged through a mortgage broker. Brokers reduce the hassle of researching and applying for a home loan, can often access loan conditions not available to direct-to-bank customers, and can compare lots of lenders to find the right loan for you.
Mortgage Broker Group works on commission from lenders, meaning you never pay us for our service – whether you borrow through us or not. We survey a vast number of home loans, and match one to your financial needs and real estate goals.
Get organised
When you meet with a Mortgage Broker Group expert, we need information from you so we can find you the right loan. Some details are required by law. These make sure and bank or non-bank lender is acting responsibly. There are also details that we need to help us understand your loan requirements. Unlike seeking advice from a particular bank, brokers have a legal Best Interests Duty, meaning we have to find you the best possible loan for your specific situation.
Before meeting with our brokers, get hold of as much of the following information as possible. It’ll make the road to pre-approval and securing a loan faster and easier.
1. Identification
Like any bank account in Australia, a home loan requires you to prove your identity. This is usually done with a driver licence and a passport, but there are other documents that lenders will accept too.
Having a combination of birth or citizenship certificates, tax returns and even your electricity bill can all count towards proving who you are.
2. Income details
Lenders will need to know your earnings. You could provide your MyGov payment details, or an official letter from your employer stating your payment history and details. Most lenders will also accept two or three recent consecutive pay slips.
Self-employed people can rely on a letter from their accountant confirming income and tax details. Two or three years of tax info is typically enough.
If you have other sources of income, you’ll need proof of that too. Include everything from rental income to Centrelink payments. If your parents or a friend are helping you out financially, get them to arrange a statutory declaration with the details.
3. Bank statements
By law, lenders have to decide what you can afford to repay. They can’t offer you a loan that is more than they think you can afford. They rely on bank statements (including any credit cards) to work out how much you usually spend and whether you have other loans you’re paying off. Superannuation statements might also be needed, so have that information handy in case.
4. Loans and payments
Finally, you need to declare any loans you have and provide a recent statement. This includes personal loans, car loans, other mortgages, all credit cards, and even store cards. Not that banks consider credit cards to be debts, so you can improve your financial position by paying off and closing extra cards.
Be prepared
Having all of this documentation to hand will make the process of finding a loan faster and easier. Don’t wait until the last minute!
Contact us at Mortgage Broker Group if you need help finding any of this paperwork, and to make an appointment to discuss you home loan options. We’re here to make your transition from house-hunter to homeowner as easy as possible.