Providing your broker with the right documentation will save you time.
What information will your broker ask you to provide?
When you ask to enlist the services of a broker, they will probably ask you for the following documentation:
- Identification, including photo ID such as driver license
- Income verification documentation such as recent payslips
- Birth certificate, if you are applying for a government-funded first homeowner grant
Depending on the lender or bank you would like your broker to apply to for your loan, you may also be asked to provide:
- A recent PAYG summary
- A notice of assessment from the Australian Taxation Office
- Tax returns
- Proof of your contribution toward the transaction, such as savings or deposit statements
- Purchase contracts for a home loan, including building contracts, or plans if building
Why is this information important?
While it may seem that you are climbing the Mount Everest of paperwork, a broker will ask for all of this to ensure they are protecting you and that they get the right loan for your goals and objectives.
This is the process by which brokers ensure that they match a client with a loan that helps them achieve their property goals, whether that is buying a home to live in, one to renovate and sell, or a long-term investment, and one that matches their financial positions.
Will a bank ask for the same documentation?
If you apply for a loan with a bank that you do not currently have an account with, they will require much of the same information as a broker would.
Although borrowers may be able to avoid the paperwork by applying for a loan with their current bank (which will already have a lot of information on file), this means being constrained by the products that the bank offers and risking missing out on other products that might be more suitable.
It is also likely to mean missing out on having a broker match a loan to longer-term goals, rather than just a purchase price and interest rate.
We walk with you
If you are not yet in a position to obtain a loan or have a credit issue on your file, such as a default, having a broker on-side can be invaluable.
In a nutshell, a broker will shop around to get the right loan, they will match not just your current finances, but take into consideration your future plans as well.
