Proof of identity
Lenders in Australia are required to verify identity as part of anti-money laundering and responsible lending obligations. This usually involves providing a combination of primary identification, such as a passport or driver's licence, and sometimes secondary identification such as a Medicare card. Some lenders use point-based identification systems where different documents carry different weight. If your name has changed, for example through marriage, you may also need to provide supporting documentation such as a marriage certificate. It's worth ensuring your identification documents are current and that the details, including your address, are consistent across everything you submit, since discrepancies can slow down processing.
Proof of income
For employees, lenders typically ask for recent payslips, usually covering the last two to three pay cycles, along with your most recent group income statement (formerly known as a payment summary or group certificate). If you have other income sources, such as rental income, overtime, or bonuses, lenders usually want evidence of this too, and may only count a portion of variable income towards serviceability. Self-employed applicants generally need to provide two years of personal and business tax returns, notices of assessment, and sometimes profit and loss statements or business activity statements, since lenders typically look at an average or trend across recent years rather than a single period. Casual or contract workers may need to show a consistent income history.
Bank statements and liabilities
Lenders usually request several months of bank statements to review your income, savings pattern, and everyday spending, which feeds into their assessment of your living expenses. They also generally ask for statements or details of any existing debts, including credit cards, personal loans, car loans, and buy-now-pay-later accounts, since these affect how much you can borrow. It's worth listing all credit cards even if you don't use them regularly, as lenders typically assess the full limit as a potential liability. If you have other assets, such as savings, shares, or superannuation, providing evidence of these can support your application, particularly if it strengthens your overall financial position.
Property and contract documents
If you're purchasing a property, lenders need a copy of the signed contract of sale once you have one, along with details of the property such as the address and, in some cases, a copy of the section 32 or vendor statement depending on the state. If you're building, additional documents such as the building contract, council approved plans, and specifications are usually required. For refinancing, you'll typically need your current loan statement and details of the property, since the lender needs to assess the existing mortgage being discharged. Rates notices are also commonly requested to confirm ownership and value of a property you already own, particularly if it's being used as security.
Other supporting documents
Depending on your situation, lenders may ask for further documents, such as evidence of savings history if you have a smaller deposit, a gift letter if part of your deposit is a gift from family, or a rental history statement if you're currently renting. If you're using a guarantor, additional documentation is usually needed from that person, including their own financial information. Self-employed applicants and those with company or trust structures may need to provide additional entity documents, such as trust deeds or company registration details. Having documents organised and readily accessible before you apply can help avoid delays, since incomplete applications are a common cause of processing hold-ups.
Key points
- Identity, income and liability documents are required by every lender
- Self-employed applicants usually need two years of tax returns and financials
- Bank statements help lenders assess spending and living expenses
- A signed contract of sale is needed once you're purchasing a specific property
- Having documents ready in advance can reduce processing delays
Frequently asked questions
What payslips do I need for a home loan?
Most lenders ask for your two to three most recent payslips along with your latest group income statement, though requirements can vary.
Do self-employed applicants need different documents?
Yes, generally two years of personal and business tax returns and notices of assessment, and sometimes additional financial statements.
How many months of bank statements are needed?
Lenders usually ask for three to six months of statements, though this can vary by lender and loan type.
What if my deposit includes a gift from family?
You'll usually need a signed gift letter confirming the funds are a genuine gift and not required to be repaid.
Do I need the contract of sale to apply?
You can start the application before finding a property, but a signed contract is usually required before formal approval can be finalised.