As we approach titles, and the start of the build, things are quickly hitting home that the house build will start soon. Ahead of that, we have an important step to take care of, finance. After saving aggressively for our deposit, we are ready to apply for a mortgage.

Update – the meeting with the bank got postponed till July 30th.

Having decided on a Bank, in our case, Hume Bank, I began researching the documentation required for a home loan to make sure we’re adequately prepared for the day.

As we’re both full-time employees with long histories at our respective employers, with a significant savings history, we’re head into the process well setup.

We need to provide 2 recent payslips, our latest year’s PAYG payment summary (group certificate), tax return, or notice of assessment issued by the tax office.

Naturally, there’s a requirement for proof of our employment, so a letter of employment, detailing type of employment, length of service, and income may also be required.

As we’ll also be switching savings accounts to Hume, there’s the need to open accounts both for the home loan and regular day-to-day accounts. One option, still undecided is certainly to have an offset account.

Assuming everything goes well at pre-approval next week, from there the track to full approval really requires work from Metricon to resolve the final amount. We’re buying land and building so this loan will start relatively small and grow from there.

There’ll be multiple stages of the loan, with the first being an intro rate for the first 12 months. It’ll also be interest only for the duration of the build (4 to 5 months) and then it reverts to principle and interest, but by then we’ll be done with rent FOREVER! Definitely looking forward to that day.