Every mortgage broker has experienced it: a loan application bounces back from the lender because of a document issue that should have been caught earlier. These delays frustrate clients, slow down settlements, and create unnecessary rework.
Here are the five most common document mistakes we see — and how to avoid them.
1. Mismatched income figures
The most frequent issue is income discrepancies between documents. A client's payslip might show one figure, their employment letter states another, and their tax return tells a different story entirely.
What to check:
- Compare gross income across payslips, group certificates, and employment letters
- Verify YTD figures align with the stated annual salary
- Check for overtime, bonuses, or allowances that might explain differences
2. Outdated documents
Lenders typically require documents from the last 90 days. It's surprisingly common for applications to include bank statements or payslips that are just past the cutoff.
Quick fix: Set a calendar reminder to check document dates before submission. Better yet, use tools that automatically flag expired documents.
3. Missing pages from bank statements
When clients download PDF bank statements, they sometimes miss the first or last page. This means the opening balance, closing balance, or account holder details might be absent — all of which lenders require.
Tip: Always verify that bank statements include:
- Account holder name and address
- Opening and closing balances
- All transaction pages (check page numbers)
4. Undisclosed liabilities
Bank statements often reveal regular payments to other lenders that the client hasn't disclosed. These "hidden" liabilities can significantly impact serviceability calculations and delay approvals.
A thorough review of 3 months of bank statements will catch most undisclosed liabilities — credit cards, personal loans, BNPL services, and other regular commitments.
Common signs to look for:
- Regular payments to Afterpay, Zip, or other BNPL providers
- Credit card minimum payments
- Direct debits to other financial institutions
5. Inconsistent personal details
Name variations, different addresses across documents, or mismatched dates of birth create identity verification headaches. Even small differences — like "John Smith" on one document and "John A. Smith" on another — can trigger additional verification requirements.
Best practice: Create a checklist of personal details to cross-reference:
| Detail | Documents to check |
|---|---|
| Full name | All documents |
| Date of birth | ID, Credit Report |
| Current address | ID, Payslip, Statements |
| Employer ABN | Payslips |
Prevention is better than cure
The common thread across all these mistakes is that they're catchable — with the right process. Whether you use a manual checklist or AI-powered tools, the key is reviewing documents systematically before they reach the lender.
Catching these issues upfront saves days of back-and-forth and keeps your clients happy. In a market where speed matters, getting it right the first time is a competitive advantage.