No one likes paperwork; however, providing your broker with the right documentation will save you time and money in the long run.
When you enlist the services of a broker, we will probably ask you for the following documentation:
- Personal Identification – Current Drivers Licence and or Current Passport, we may also need a Birth Certificate or Certificate of Citizenship
- Income Details for Salaried Applicants – 2 most recent pay slips which must be computerised with year to date and ABN of employer or last financial years payment summary (group certificate) if bonuses or over time where paid. We may also need your current employment contract or employment agreement OR a letter from your employer stating rate of pay, length of service and current employment status
- Income Details for Self Employed Applicants – 2 most recent years ATO Tax Returns and Tax Assessment Notices (both personal and business) Balance Sheets and detailed Profit and Loss Statements covering the most recent 2 years for the business, Details of external liabilities (leases, hire purchase, overdrafts, company loans and/or guarantees)
- Financial Commitments – Most recent 3 months worth of statements for any existing Home Loans – this must have your name and account number on it, Latest 3 months statements of any personal loans/car loans – evidence confirming current monthly repayments, latest statements for all existing Credit Cards and Store Cards, estimate of current monthly lifestyle expenses, Council Rates notice for each property owned
- Investments – The latest 3 months worth of statements for any shares, managed funds, term deposits, plantations or other investment portfolios, the latest 3 months worth of statements of Investment Loans (eg. Investment Property, Margin Loans, Capital Protection Loans), rental income – one of the following is sufficient., letter from Real Estate confirming current or likely rental amount OR current tenancy agreement OR current rental statement for the property within the last 30 days
- Your Contribution (Deposit) – Evidence of 5% genuine savings showing 3 months savings history, 3 months worth of latest bank statements, savings accounts, term deposit statements or share certificates
- Superannuation & Investments – Latest Superannuation statements for all existing funds – old and new, trust deed for your self managed super fund
- Insurances – Personal insurance policies or annual renewal statements (Life, Income Protection, Total and Permanent Disability, TBD, Trauma, Critical Illness, Injury and Illness etc), general insurance policies or annual renewal statements (Home Building and Contents, Vehicles, Landlords Insurance). For self employed applicants – Professional Indemnity, Key Person, Public Liability and any other Business Policies are also required
- Other Related Entities – Trust Deeds, ABN / ACN of trusts and/or companies that you are the trustee, director or beneficiary of
That’s A LOT of information! Why is this information important?
While it may seem that you are climbing the Mount Everest of paperwork, we only ask for all of this to ensure that we are protecting you and that we get you the best possible deal in the quickest time.
Gathering various forms of documentation at the start allows us to do a fact find, which is an important part of the loan process. 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 build or renovate and sell, or a long-term investment, and one that matches their financial positions. The last thing we want to do is put prospective loan clients into a situation where they cannot afford to repay their new loan commitments.
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 all 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 bank offers and risking missing out on a great deal.
The benefit a broker has compared to an individual bank is that the broker has access to most banks and lenders across Australia. Lending policies and pricing vary greatly across the lending market and some clients do not realise this, so why waste time going direct to a bank? 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.
Saving you time and money
We can usually tell a client within 10 minutes whether they have a chance of obtaining loan approval. Blue Wave has access to bank loan affordability and serviceability calculators, which show clients’ potential borrowing capacity. Depending on the size of the funding required, and the loan to valuation ratio, these days the banks are extremely competitive, and we can quite often get a better price deal than advertised.
If a client is not yet in a position to obtain a loan or has a credit issue on their file, such as a default, having a broker on-side can be invaluable. We can guide the client with a view of getting default removed, or waiting until the default drops off the client’s credit file. Most brokers are accredited to gain access to client’s credit files these days, which is an extremely important issue due to the banks’ risk scoring.
In a nutshell, a broker will shop around to get the best possible deal for you, their client. We are the experts in finding you a loan that matches not just your finances, but your future plans.
Call us today on 07 5443 8773