How to apply for a BCU Bank home loan

We've told you the basics already, but when you’re officially ready to apply for a home loan, we're going to need some more in-depth information from you. Applying for a home loan is much easier when you've got what you need ready to go, so let's get into it.

Identification

How much identification we need to see before you can apply for a home loan will depend on whether you're an existing or new customer of BCU Bank.

For new customers:

To open a membership in one of our branches, we'll need to see your Australian driver licence, proof of age card or valid passport.

Alternatively, you can also use one form of primary ID without your photo (e.g. your birth certificate or citizenship papers) with one form of secondary ID (e.g. your most recent power bill or your Medicare card).

Original and certified copies of documents are accepted.

Alternatively, you can become a BCU Bank customer by opening an everyday or savings account quickly and easily online.

For existing customers:

If you've been banking with BCU Bank for over three months, we'll only need to see one of the following:

• Your Australian driver licence
• Your Australian passport

If you're already a BCU Bank customer but have only recently joined us, you'll be subject to provide further identification to progress with your home loan application.

Your income

Your proof of income is one of the most important factors when it comes to us assessing your eligibility for a home loan, and what you'll need to provide here may vary based on your income type.

Unless you're already a customer and your salary is paid into your BCU Bank account, you'll need to show us proof of your employment and income. This can be done by providing us with copies of your two most recent payslips and either a letter from your employer confirming the details of your employment and salary, or a copy of your employment contract. Alternatively, you can provide us with three months' worth of bank statements for the account your salary is paid into.

For self-employed borrowers:

If you're self-employed and want to buy a home, the documents we require differ ever-so-slightly depending on how much you plan to borrow. 

If you're planning to borrow less than 80% of the value of the property:

• Your personal and business tax returns for the previous one year, and
• your most recent notice of assessment from the Australian Tax Office (ATO).

If you're planning to borrow more than 80% of the value of the property:

• Your personal and business tax returns for the previous two years, and
• your most recent notice of assessment from the  Australian Tax Office (ATO).

For borrowers with rental properties:

If you also earn any income from a rental property, we'll need see some additional documents. These include:

• the current, signed lease agreement, or
• a letter from your real estate agent or property manager confirming your rental income, or
• the last three months of bank statements showing rental deposits.

If you have other income (e.g. payments from shares) that we haven't covered above, we'll also require supporting documents for these.

What you own, and what you owe

Before you complete your home loan application, we’ll ask you about your assets and if you have savings in any accounts that aren't held with BCU Bank, and we'll also want to know about any liabilities such as existing credit card debts or car loans. 

To put it simply, assets are things of value that you own, such as cars, shares, and savings; while liabliities are anything you owe, such as ongoing car loan repayments, credit cards, or any other personal debts.

If it's not with BCU, we'll want to know the details of it.

Any extra supporting documents

The extra documents needed to apply for a home loan will vary depending on what your current circumstances are.

If you're buying your first home, you may be able to benefit from existing government schemes or grants. If you're eligible for any, please ensure you've completed your applications for these so that you can provide them to us upon application.

If you're building a new home and you've already negotiated a contract, please provide us with a copy of your contract.

If you've got someone as a guarantor on your home loan application, they will need to provide all supporting documentation to verify their identity, income, assets and liabilities.

Before you jump on to real estate websites looking for your dream house, there's a couple more things it can pay to do before your official home loan application.

Calculate your expenses

Calculate your current living expenses. Living expenses should be calculated based off the money you require to maintain a reasonable standard of living that's comfortable for you, and should include expenses such as food, transport, clothes, utilities, education and healthcare. We’ll ask you for a breakdown of your monthly living expenses when you apply for a home loan.

Get pre-approval

You don't need to have a property in mind before you apply for a home loan, and it's a good idea to contact a home lender and get pre-approval to find out how much you can borrow before the search even begins. Not only can this prevent the sadness that comes with realising you can't afford the house you had your heart set on, it can also save you time when it comes to officially purchasing a property!

It's at this point of your home loan application where you will be asked to provide information outlining your income, expenses, assets and liabilities. For those of you playing along at home, you may already have this sorted! Your home loan pre-approval will last 90 days.

Pre-approval indicates that you have a good chance of being approved for a home loan up to a specific amount, providing your financial circumstances do not change. Pre-approval is not a guarantee that you will be approved for a loan.

To get home loan pre-approval from BCU Bank, get in touch with one of our home lenders. They'll be able to meet you in one of our branches spanning across the East Coast, via video call, or they can even come to you at a time that suits.