No one likes paperwork; however, providing your broker with the right documentation will save you time and money.

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 licence
• Income verification documentation such as recent payslips
• Birth certificate, if you are applying for a government funded first home owner 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 best possible deal.

The gathering of information provides Brokers with the opportunity to “fact find”, which is one of the most important parts of the process. This is where 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. Putting a prospective loan client into a situation where they cannot afford the loan is not something Brokers want to do.

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 bank offers and risking missing out on a great deal.

When assessing the most appropriate loan for your personal circumstances, Brokers have access to multiple lenders rather than an individual bank. A broker can also match a loan to longer-term goals, rather than just provide a purchase price and interest rate.

Saving you time and money

Brokers can provide a fast response for the eligibility of a loan.

Brokers have 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, banks can be extremely competitive. Brokers are able to ensure the most appropriate finance is sourced for your needs.

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.

In a nutshell, a broker will shop around to get the best possible deal for you, their client.

Conquer Finance are experts in finding you a loan that matches not just your finances, but your future plans. Call us on 1300-513-467 to discuss your requirements further.