What lenders normally assess
A lender may review income stability, household expenses, existing debts, credit conduct, deposit history and identification. Requirements vary with employment type and application complexity.
Starting document checklist: PAYG employed applicants
This is a starting point for a standard application, not a fixed requirement for every lender. Chris first establishes your employment arrangement and application circumstances.
- Your 2 most recent payslips.
- Your most recent income statement.
- Driver’s licence, passport and Medicare card; Chris can confirm the identification documents accepted for your application.
- 3 months of statements for spending accounts, savings accounts, credit cards, personal loans and car loans, where applicable.
- 6 months of statements for any existing home loans, where applicable.
- The contract of sale, when available for a purchase. You do not need to have signed a contract just to start discussing pre-approval.
Starting document checklist: self-employed applicants
For a standard self-employed application, start with the following records. Chris can confirm which entities and reporting periods apply.
- The 2 most recent years of personal and business tax returns for all relevant companies, trusts and personal entities, with matching notices of assessment where issued.
- Your most recent income statement, where applicable.
- Driver’s licence, passport and Medicare card; Chris can confirm the identification documents accepted for your application.
- 3 months of statements for spending accounts, savings accounts, credit cards, personal loans and car loans, where applicable.
- 6 months of statements for any existing home loans, where applicable.
- The contract of sale, when available for a purchase. You do not need to have signed a contract just to start discussing pre-approval.
Requirements can change for your application
Document requirements are subject to change. Additional or different documents may be required depending on the lender, application and your circumstances. Low-doc and other non-standard applications may use different evidence, such as accepted BAS, business bank statements or an accountant’s declaration. Chris confirms the current checklist and how to provide it securely. Keep financial documents and account details out of Scout and the general enquiry form.
What conditional approval means
Pre-approval is generally subject to conditions. Final approval can still depend on updated documents, a satisfactory property valuation, unchanged circumstances and the lender policy that applies at the time.
Before making an offer
Check the approval amount, expiry date and outstanding conditions. Speak with your conveyancer about contract protections, including whether a finance condition is appropriate.
Changes that may affect approval
New credit, reduced income, increased expenses, missed repayments, a different property type or changes in lender policy may affect the final assessment.
Common questions
Questions first home buyers ask
Does pre-approval guarantee my home loan?
No. It is usually conditional. Final approval depends on the lender completing all checks, accepting the property and confirming that the application still meets policy.
How long does pre-approval last?
The validity period varies by lender. Check the expiry date and ask what information will need to be refreshed if your search takes longer.
Can I make an unconditional offer with pre-approval?
Pre-approval is not the same as unconditional approval. Obtain legal advice about contract conditions and understand the financial risk before waiving finance protections.