Documentation Required For Settlement
When our legal representatives prepare your loan agreements, they will send them out for you to review, sign, and send back.
We cannot start preparing your loan for settlement until we receive all documents correctly signed and filled out. For this reason, you should aim to review, fill out and sign all documents as quickly as possible, and send them all back to the solicitors without delay. It’s a good idea to make a copy of each completed document to keep for your records.
To help make this process as easy as possible, below is a short explanation of what you should expect to receive.
|This contract details your loan agreement, which you should revise carefully to ensure everything discussed and approved with your Lending Specialist is in writing. It will also include:
|This is a legal document which will be lodged to your State or Territory to register your mortgage.|
|This form should be filled out to set up a direct debit for your home loan repayments.|
|Certificate of Witness Form|
|The witness must sign this document, and the mortgagor is required to sign all documents in the presence of this witness. The requirements for a witness differ by state, and whether being witness onshore or overseas. If witnessing onshore, your witness must be over 18 years of age, and must not be the borrower or guarantor. The following states require further conditions:
NSW: Your witness must be over 18 years of age and must have either known the mortgagor for more than 12 months, or has sighted appropriate identification.
NT: Your witness must be over 18 years of age and either a Notary Public, Justice of the Peace, Commissioner for Oaths, Lawyer, Solicitor, Barrister, Legal Practitioner, Conveyance, or a member of the Police Force.
QLD: Your witness must be over 18 years of age and either a Notary Public, Justice of the Peace, Commissioner for Declarations, an Australian Lawyer or Licensed Conveyancer.
SA: Your witness must be over 18 years of age and must have either known the mortgagor for more than 12 months, or be satisfied as to the identity of the mortgagor.
If witnessing documents outside of Australia, for ACT, NSW, TAS and VIC, the witness must be over 18 years of age. Other rules apply for witnesses regarding property in the following states:
NT: The witness must be a British or Australian diplomat or a Notary Public. In any commonwealth country, the witness could also be a consular agent in that country or a person who has authority in that country to take an oath of declaration.
QLD: The witness must be an Australian consular officer or authorised employee of the Australian Government, a Notary Public, and Australian Lawyer, or a New Zealand Lawyer.
SA: The witness must be over 18 years of age and either knows the mortgagor personally or is satisfied as to their identity.
WA: The witness must be an Australian consular officer, Ambassador, High Commissioner, Minister, Head of Mission, Commissioner, Consul or Secretary at an Embassy, High Commissioner’s Office, Legation or either Past, Consular-General, Consul, Vice-Consul, Trade Commissioner, or a Consular Agent.
|Depending on your loan product, you will receive two documents, of which you must only complete one. The first document (the Borrower Certificate) is to confirm that you have not received legal advice, and the second additional document is to confirm that you have received legal advice. Completing either document will also confirm that you have understood the documentation you are signing.
The additional document sent depends on the state:
NSW: Declaration by Borrower
VIC: Legal Practitioners Certificate
All other states: Certificate of Independent Legal Advice
|Pre-Filled Discharge Form|
|If you are refinancing your home, you will be sent a discharge form* to ‘discharge’ you from your current lender in order to switch to a better deal. Once sent back, we will lodge this form with your current lender, and can begin the process of refinancing your loan.
*Your Lending Specialist may have already obtained this from you, in which case this document will not be reissued in your documentation for settlement. We are unable to send forms for some outgoing Lenders, so in this case we will send an information sheet detailing how to discharge your loan with your current Lender directly.
|If required, this document will ask you fill out general questions regarding the chosen property, such as whether rates are paid to dates and whether the property is being rented out.|
How can a home loan application checklist make applying for a loan easier?
Can my income details give me an indication of whether or not my application will be approved?
Making sure your loan application details are in order before you apply is obviously important. This is important for many reasons, not the least because it is worthwhile thinking beyond the application stage. If your application is accepted, you enter into a contractual agreement to pay it back. Thinking about what happens if your loan is approved is one thing, but thinking about what happens if your application is rejected is another. Having a loan rejection on your credit history can be a red flag for future loan applications. So, it’s vital to ensure your loan application is as complete as possible before submitting. It’s also important to be realistic about your loan application, especially when it comes to income. Put yourself in a lender’s shoes. Take a look at our borrowing calculator to get an indication of how much you might be able to borrow. From there you can get an idea of whether your income is sufficient to pay off the loan you are applying for. Speak with our expert lenders, who can do some quick calculations and give you a further indication of your chances of success. So, make sure your income statements are accurate and make sure every other aspect of your loan application is correct. Double and triple-check it just to be sure.
What payslip information will I need?
One of the key parts of proving your income when applying for a loan is your payslip. Most banks and lenders require at least your two most recent payslips and some documentation from your employer outlining how long you have worked in your current job. It can also be important to have documentation that outlines how much overtime you have done in the past year and any extra allowances. It can be especially important if you are a shift worker and often work extra or irregular shifts. It can also be important if you are, for example, a nurse, and have regular 9-5 hours in one part of the hospital, but often take extra shifts in another section, at odd hours. In this case, it can be important to show your full income, even if it means going back over the current financial year. But what happens if you are self-employed, or a contractor or freelancer and are unable to provide the regular income documentation? If that’s the case, make sure you have the past two financial years’ tax returns available, so banks and lenders can see a pattern of income, as well as your most recent Assessment Notice. Some lenders may also require profit and loss statements. It may be recommended you apply for a low doc loan, which can have less paperwork requirements. But, you will still need a good credit rating.
What about rental income?
If you are buying an investment property, banks and lenders may want to see a copy of the lease with the current tenants, or at least a letter from the property manager outlining the estimated rental income of the property you want to buy. And if you already own an investment property, make sure you have evidence of the net rental income on hand. This is an important part of you presenting your income for a loan application.
What do I do if I already have a personal loan?
It’s also important to have the details of your personal or car loan available if you have one. Providing the most recent statement can let the bank or lender know exactly what your repayments are, and how much of the loan you still have to pay off. Something that might be worthwhile if you are applying for a mortgage is to refinance the personal loan into our mortgage amount. This can save you money, given a mortgage can be for as much as 30 years. You can save on interest, and you may hardly notice the extra repayments as part of your mortgage.