Organise Documents for the Home Loan
Organise documents for the home loan or mortgage
When assessing your eligibility for a home loan and how much you can borrow banks will need these documents from you.
Evidence of deposit
Banks require that at least 5% of the deposit towards the purchase of the house needs to come from your own savings. You will need to provide latest 3 months bank statement of accounts where your savings or term deposit is sitting.
Confirmation of income
If you are employed, banks will ask for your 3 most recent payslips to confirm your income. If you have been in your current employment for less than 3 months, the bank will ask for a copy of your employment contract to ensure there is no probation period. If part of your annual income comes from bonus or commission, regular overtime or on-call time, your bank will want to see 2 years of IRD Summaries to confirm you have been consistently earning above your base salary.
If you run a business or are self-employed banks will ask last 2 years of financials (profit & loss and assets and liabilities position) for your business. This needs to be prepared by a chartered accountant in order to confirm your annual income.
Before banks lend you the big money, they would want to make sure that you have been good in dealing with handling the small amounts. To ensure your account conduct has been good, bank will ask you to submit 3 months of bank statements for the account(s) where your income is deposited into and from which expenses withdrawn.
Banks will ask you to submit a copy of your passport along with the residency page to ensure you are entitled to receive a loan from the bank.
Sale & Purchase Agreement
When you have found your dream home, banks will ask you to submit a copy of the signed sale and purchase agreement so they know the house you are purchasing and can assess whether they are safe to lend against the house.