Get a fast home loan approval
Buying a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process.
Generally speaking, it takes between 4-6 weeks from submitting your application to reaching settlement on your property, depending on the state in which you live in.
However, there are other factors that determine how quickly you get approved including the lender, the complexity of your situation and how quickly you return your mortgage documents.
What do I have to do first?
The first step is the conditional approval or pre-approval process.
For all intents and purposes, a pre-approval is an approval subject to a full valuation of the property you want to purchase.
You need to submit a completed mortgage application form along with the supporting documents that the bank asks for including:
- Acceptable forms of ID.
- Payslips and other financials such as your most recent group certificate or a Notice of Assessment if you’re self-employed.
- Evidence of savings and/or your deposit, usually in the form of a bank statement.
- Statements for current debt facilities such as a credit card.
You can read more about what to provide for your home loan application on the Prepare To Apply For A Home Loan page.
Ultimately, the time taken from submission to receiving a response from the bank can vary depending on the complexity of your situation.
By applying through a mortgage broker instead, you can save yourself a lot of time and hassle.
The reason is that a good mortgage broker will assess your entire situation and organise your application with the right lender.
Call us on 1300 889 743 or fill in our online enquiry form to discover how we can make the home loan application process fast and easy.
How long does it take to complete an application?
Whether you’re a single applicant or applying with someone else, it typically takes about 15-20 minutes to fill out an application form.
How soon will I hear from the bank?
If you work either full-time or part-time and can provide at least two payslips and a group certificate to prove your income, you may hear back from the lender within 3 days.
Similarly, if you’re borrowing less than 80% of the property value, you can expect a quick response.
Of course, you still have to meet the bank’s servicing requirements, which means they have to be satisfied that your income-to-debt ratio is strong and that you can afford the loan amount.
After the credit department processes your application, the lender may either come back with an unconditional approval or, at worst, a decline.
The more complex your situation or the higher the risk associated with your mortgage application, the longer the lenders will take to process your application.
Generally speaking, this applies to the following situations:
- Borrowing more than 80% of the property value, which is seen as a higher risk so the lender will have to apply for Lenders Mortgage Insurance (LMI), adding more time to the pre-approval process.
- Borrowing more than $2 million.
- Borrowing with a guarantor.
- Buying a unique property such as a house located in a rural or regional location.
- Unusual employment such as contract work or if you’ve just started a new job.
- Borrowing through a trust, company or a self-managed superannuation fund (SMSF).
- You’re a non-resident who is either living overseas or living in Australia on a temporary working visa.
The reason why it takes longer to assess your application is that situations that are “outside the box” require more work from the credit team to ensure that you meet their lending policy.
A mortgage broker can actually prepare your application on your behalf and mitigate the risks in your application.
That’s because they have strong relationships with the key decision-makers and understand how to present your application.
In some cases, it’s a matter of providing alternative documents or a good explanation for your current circumstances, such as not having up-to-date financials or having a black mark on your credit file.
Complete our free assessment form, tell us a little about your situation and we can let you know if you qualify for a mortgage.
How soon can I get pre-approved for a home loan?
Generally speaking, most major lenders usually have a longer turnaround time. After submitting your application, it may take 18-24 days for a major lender to get back to you with a decision.
Many of the smaller lenders are quicker compared to their ADI (Authorised Deposit-taking Institutions) counterparts with remarkably shorter turnarounds of 3-7 days.
The turnaround time faced by a lender, however, may also be indicative of the number of applications they are receiving. Usually, lenders with good rates, products and offers deal with a high volume of applications and thus may be slower.
Many people are in a rush to buy a property that they have found and have no choice but to go for a lender with short turnaround and end up paying higher rates. That’s why it is always a good idea to get a pre-approval before you make an offer on a property.
A pre-approval gives you the confidence to go looking for a property as well as the maximum purchase price, not to mention the time to select the best interest rates available for you.
What happens after I receive a pre-approval?
If no other documents are required by the bank and you meet the lending criteria, you’ll be given a pre-approval.
You can now start looking for a property and make an offer but check out the ‘After you’ve been pre-approved’ page for a full guide.
Essentially, this step can take as long as you need it to, bearing in mind that your pre-approval will be valid for up to 3 months. Depending on the lender, a valid pre-approval of 110 days is also available.
Already found a property?
Let your bank know of the address so they can look the property up and decide whether it meets their lending criteria.
How long will the valuation take?
It depends on the nature of the property and your application.
If you’re borrowing at 80%, some lenders will just go off the Contract of Sale.
Some will do what is known as a “kerbside valuation” just to confirm that there is in fact a property located at the address provided.
So you could potentially hear back from the bank with your formal approval the next day.
If a full valuation is required, it could take as long as 5-7 business days depending on how quickly the vendor or real estate agent allow access into the property.
It also comes down to the availability of the valuer.
What happens after formal approval?
Once a valuation has been undertaken and you’ve been formally approved, you can sign the Contract of Sale with help from your conveyancer.
It’s at this stage you should negotiate the settlement date, which is typically set for four weeks after signing the Contract of Sale.
The time between getting formal approval and signing the Contract of Sale will come down to how organised you and the vendor are.
Typically, the vendor’s conveyancer will send the Contract of Sale to your conveyancer and you’ll then organise a date to have a meeting to discuss the terms.
Consider 1-2 days so you’re not rushing into the sale.
Meanwhile, the bank will be preparing the loan offer documents for you to sign.
This can take anywhere between 2-7 days!
During this time, the lender may ask for updated documents or further documents so be prepared.
It’s important to sign and return the loan contract as soon as possible.
You can find more useful information on buying a property on the ‘Home Buying Process‘ page.
Speed up the process!
- Read each mortgage document carefully.
- Provide all of the documents that the bank asks for the first time around.
- Make sure the supporting documents are the most up-to-date.
- Sign the mortgage documents and return them as soon as you’ve agreed to the terms.
- Notify the vendor or real estate agent and tell them whether they need to allow allow access to the property for a valuation.
Better yet, why not speak to a mortgage broker from the start?
They’ll ask for the relevant documents from you upfront, complete the application over the phone and go with the right lender for your situation.
They’ll also liaise with you, your bank, you and the vendor’s conveyancers, the valuer and even the real estate agent to ensure the process runs smoothly.
Because we write so many loans with some of Australia’s largest banks and lenders, we can even escalate your application so it gets processed faster.
Call us on 1300 889 743 or complete our free assessment form and discover how we can get your mortgage application approved faster and get you into your new property hassle-free.