Understanding the documentation required for a home loan is a crucial step for prospective buyers in Melbourne, and therefore impacts the selling process. As of December 2025, lenders require comprehensive verification of a buyer’s financial position to assess their borrowing capacity.
Currently in Melbourne, buyers typically need to provide proof of income – usually payslips covering the last two to three months, and potentially employment contracts. Self-employed individuals will likely need to submit tax returns for the past two years. Lenders also require identification, such as a driver’s license and passport. Detailed statements for all bank accounts, credit cards, and any other loans are essential. In the Eastern Suburbs, where competition for family homes is strong, pre-approval is almost essential, meaning buyers will have already undergone much of this documentation. We’re seeing in 2026 that lenders are increasingly scrutinising spending habits, so bank statements are particularly important. Buyers also need to provide details of any existing commitments, like car loans or personal debts. The complexity can sometimes lead to longer inspection periods, as buyers finalise financing. Fletchers’ experience shows that well-prepared buyers, with documentation readily available, are often in a stronger negotiating position.
Essentially, lenders aim to build a complete financial profile of the buyer, ensuring they can comfortably meet loan repayments, which ultimately influences the speed and certainty of a sale.