Insights
A clean home loan application is usually a fast application. A messy application is usually a slow one. Lenders want to verify identity, confirm income, understand your deposit, and assess debts and living expenses. If you give them what they need upfront, it reduces back and forth.
Most applications need photo ID, proof of income, bank statements showing your deposit, and details of existing debts. If you are refinancing, you will also need your current loan statements and lender details.
Most lenders ask for two to three recent payslips. Some will also ask for your most recent income statement or PAYG summary. If you are new to a role, a contract or letter from your employer is sometimes requested.
This is where lender requirements vary the most. Commonly, lenders want the last two years of tax returns and notices of assessment for both personal and business. They also often want financial statements such as profit and loss and balance sheet. Some lenders request BAS, either quarterly or year to date. Occasionally, an accountant letter or confirmation of business structure helps. If you are self employed, being organised early is one of the biggest factors in a smooth approval.
If your deposit is savings, lenders often want statements showing it accumulating over time. If part of your deposit is a gift, lenders typically want a signed gift letter and evidence of the funds arriving in your account. If your deposit includes equity, lenders need evidence of property ownership and the current loan details. If your deposit comes from another source, such as selling shares, you generally want documentation that clearly supports the source of funds.
When you have a property, lenders typically need the contract of sale. For apartments, strata reports and disclosures often matter. For construction or building, lenders may request building contracts and plans, and often prefer fixed price contracts.
Unexplained transactions in bank statements are a common one. Large cash deposits, transfers with no notes, or irregular inflows can lead to extra questions. High credit card limits can reduce borrowing power even if you do not use them. New debt right before applying can also cause issues, including car finance and Buy Now Pay Later commitments. Incomplete statements are another big one. Screenshots, missing pages, and unclear date ranges slow everything down. For self employed applicants, inconsistencies across BAS, financial statements and tax returns can trigger extra checks.
Keep spending steady and avoid big new commitments. Avoid new credit enquiries until after settlement. Reduce unused credit card limits if they are high. Label large transfers and keep documentation for anything unusual. Use proper PDFs with complete pages and correct date ranges. If you are self employed, gather documents early and keep them consistent.
Not sure what your numbers might look like yet? Try our Borrowing Power Calculator to get a rough starting range before you speak with a broker. It’s only a guide, but it can help you understand what might be possible based on your income, expenses and current commitments.
Most lenders ask for two to three recent payslips, but it varies based on employment type and how recently you started.
Yes. Lenders typically want statements to confirm your deposit, savings pattern, and living expenses.
Usually two years of tax returns and financials, and sometimes BAS and accountant confirmation. Requirements vary by lender.
Some lenders want to see savings accumulated over time. Bank statements showing consistent saving is the usual proof.
Often yes. Lenders typically want a gift letter and evidence of the funds being transferred into your account.
We can help you sense check structure, borrowing power, and next steps so you can move forward confidently, without creating a compliance headache later.
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