When it comes to applying for a home loan, navigating through the necessary documents and requirements can often feel like a daunting task. AMP Bank aims to simplify this process through its “One Touch Formal” approach, streamlining the submission of documents for a smoother and more efficient home loan application experience. In this article, we’ll look closer at AMP Bank’s requirements for PAYG (Pay As You Go) income applicants, shedding light on the essential documents and guidelines to ensure a successful application.

 

The Supporting Documents Checklist: Your Roadmap to Success

AMP Bank’s Supporting Documents Checklist is a comprehensive guide that outlines the minimum requirements for a home loan application. This checklist is your roadmap to ensure you have all the necessary documents for a seamless application process. It’s important to note that AMP Bank may request additional documents during the assessment process, so having everything organised and ready to go is key.

 

PAYG Income: What You Need to Know

For individuals with PAYG income, the checklist outlines specific documents that need to be provided to support your home loan application. Here are the key documents you need:

  • Recent Payslips: You must provide two consecutive payslips, with the most recent one dated within 60 days. These payslips should display your employer’s ABN (Australian Business Number) and your year-to-date income earned.
  • Year-to-Date Income Statement: If your payslips do not include year-to-date income information or show less than three months of year-to-date figures, you must provide a recent income statement to support your payslips.
  • Salary Sacrifice Provider Statement: If applicable, provide a statement dated within 60 days that confirms any salary sacrifice arrangements.
  • Fully Maintained Company Car: If you have a fully maintained company car, supply a letter from your employer or an employment contract, both dated within 60 days.
  • Bonus Income: If you receive bonus income, include either a letter from your employer confirming the bonus income received or actual payslips showing the bonuses received within the past 12 calendar months.

 

Navigating Self-Employment

For self-employed individuals, the documentation requirements are more extensive. You’ll need to provide documents that reflect your business’s financial health over the past two years:

  • Individual Tax Returns: Submit your two most recent individual tax returns. Summary returns will not be accepted.
  • ATO Notice of Assessment: Include your most recent Notice of Assessment from the Australian Taxation Office.
  • Company, Trust, or Partnership Tax Returns: If applicable, provide the two most recent years’ tax returns and financial reports for your company, trust, or partnership.
  • BAS Statements: If the current financial year’s income is lower than previous years, include BAS (Business Activity Statement) statements for the current financial year.

 

Unlocking Rental Income Potential

If you earn rental income, you’ll need to provide the following documents to support your home loan application:

  • Lease or Tenancy Agreement: Present your current lease or tenancy agreement.
  • Rental Statement: Include a rental statement dated within the last 60 days.
  • Rental Appraisal: Provide a rental appraisal from a real estate agent, dated within 60 days.
  • Valuation Report: Include a rental appraisal within the valuation report if applicable.

 

Other Sources of Income

AMP Bank recognises various sources of income beyond standard employment. Here are the documents required for specific situations:

  • Centrelink Statement: For Part A & B Family Tax Benefit Payments recipients, provide a Centrelink statement dated within 60 days.
  • Child Support: If you receive child support payments, include a copy of the current year’s Child Support Agency (CSA) Notice of Assessment and bank statements confirming payments over the last six months.
  • Allocated Pension Statement: Provide a statement dated within 60 days that reflects the balance and frequency of income from your allocated pension.
  • Investment Income: If you have investment income, two years of individual tax returns confirming income received are necessary. Note that only dividends from publicly listed companies are acceptable.

 

Ensuring a Smooth Purchase Process

For those purchasing a property, AMP Bank requires specific documents to facilitate the application process:

  • Contract of Sale: Provide a copy of the Contract of Sale. Ensure that the purchaser’s name matches the applicant’s full name and aligns with the identification documents submitted.
  • Valuation Report: Include the date ordered and valuation reference number if ordered.
  • Evidence of Funds: If the Loan-to-Value Ratio (LVR) exceeds 85%, supply evidence of funds to complete the purchase, dated within the last 30 days.
  • Gift Arrangements: If the applicant receives a gift to complete the purchase, a completed AMP Gift Letter must be submitted to confirm the gift arrangements.
  • Genuine Savings: If the base LVR is over 85%, you must provide three months of bank statements (dated within 30 days) showing that you’ve held 5% genuine savings. Internet transaction listings are acceptable in conjunction with a copy of a regular statement.

 

Refinancing and Debt Consolidation Made Clear

For those looking to refinance or consolidate debt, AMP Bank’s checklist provides specific guidelines:

  • Debt Repayment History: No further documentation is required if account details and full repayment history for the debts being refinanced are available through the client’s credit report.
  • Home Loan Refinancing: Six months of consecutive home loan statements are necessary if you’re refinancing home loans. Internet transaction listings and a copy of a regular statement can be accepted.
  • Personal Loan and Credit Card Refinancing: Provide the latest statement for personal loans or credit cards that are being refinanced as part of the application process. For Lenders Mortgage Insurance (LMI), a minimum of three months’ statements is required. Internet transaction listings and a copy of a regular statement can be accepted.
  • Verification of Pending Months: If the credit report shows “P” or “pending” status for the most recent 2 or more months before the submission date, you must verify repayments for those pending months through loan statements or transaction listings.

 

Managing Non-Refinanced Debts

If you have debts that aren’t being refinanced, AMP Bank requires specific documentation:

  • Debt Repayment History: Similar to the refinanced debts, no further documentation is needed if the account details and full repayment history are available through the client’s credit report.
  • Front Page of Statements: For all external debts that won’t be refinanced with the new loan funds, include the front page of the most recent statement or Internet banking printout/snapshot. This should show the current limit, balance, available redraw, current interest rate, and minimum required monthly repayment.
  • Verification of Pending Months: Similar to the refinanced debts, if the credit report shows “P” or “pending” status for the most recent 2 or more months before the submission date, verify repayments through loan statements or transaction listings.

 

Addressing Common Debt Reduction

If you have a separate loan with another non-borrowing related party and you’re applying “common debt reducer” principles, you’ll need to submit a signed “Statutory Declaration (Existing Debt with a Non-Borrowing Related Party)” form. This form outlines the apportionment of debt and repayment for servicing. You can access this form on the AMP Bank website under “Home Loan Forms.”

 

Equity Release: Demonstrating Purpose

For loans exceeding $250,000 with an LVR (Loan-to-Value Ratio) of 70% or higher, or loans exceeding $500,000 with an LVR of less than 70%, additional evidence of the purpose for the cash-out amount is required. Depending on the purpose, more information might be requested by the assessor.