Last Updated: 1st April, 2024

Applying for a home loan can be a long and complicated process. But, with the right brokers involved, it can be a stress-free experience. These are the basic steps involved when applying for a mortgage:

Speak With A Mortgage Broker

The best way to start to discuss your eligibility for a home loan is to speak with a mortgage broker, as there are many benefits to using a broker.

  • Hassle-free experience
  • Access to wide range of major banks and lenders
  • Service from scratch to the end, from submitting your application to settling your loan and even after settlement
  • Access to specialist lending if you do not quite fit into standard policies
  • Fast and easy approval because experts are involved
  • Tough home loans get approved because they know the best approaches
  • Negotiates sharp interest rates and other benefits on your behalf

In most cases, the services of a broker are free so why not start today? Call us on 1300 889 743 or fill in our free online inquiry form to get started on the home loan application process.

Still not sure? Here are some more reasons to use a mortgage broker.

Initial Conversation

Mortgage brokers will discuss your situation, needs and objectives. They will assess your eligibility for a home loan. This includes evaluating your financial situation and long-term goals to ensure you get a home loan that’s right for you. They will explain how each loan works and what it costs, including interest rates, features, fees and additional charges. It’s also your opportunity to clear up any confusion you have about the process before you get started.

At Home Loan Experts, our mortgage brokers work with you to:

  • Provide various options to suit your situation
  • Assess borrowing capacity and your ability to service a loan
  • Provide expert advice regarding your home loan eligibility
  • Recommend alternatives if one way does not work
  • Apply for a loan and assist in the entire process, including post-settlement service
  • Keep you informed throughout the application journey

Home Loan Experts’ mortgage brokers act in your best interests and provide you the best home loan advice you can get. This is why our customers trust us to work with them.

Submitting Your Application And Documents To The Broker

You will first need to fill out the enquiry form ; based on that, if it appears that you are eligible, brokers will send you the Short Application Form (SAF), which will include your basic details, such as name, address and employment history. Brokers will be able to get a good understanding of your situation when they look at your SAF.

For a more thorough assessment, they will ask you to send the basic documents that lenders require. The SAF and the supporting documents will help brokers make a full preliminary assessment.

What Are The Basic Documents That Lenders Require?

It varies with the lender but some of the basic documents needed for submission are:

  • Identification: Birth certificate, driver’s licence and/or passport, medicare card and bank ATM card
  • Proof of income: Two most recent payslips if you are employed as PAYG; the most recent assessment from the Australian Taxation Office if you are a casual employee; ATO self-employed
  • Income statements: Financial statements, including your income over a certain time, savings account, term deposits and expenses
    Assets and liabilities statements: Proof of your assets, including properties, vehicles and stocks; proof of liabilities, including existing home loans, car loans, student loans and any other unpaid debt
  • Current home loan statements: Six months of statements if refinancing and contract of sale if purchasing
  • Valuation report: Assessment of the market value of a property by a certified valuer

Note: Use our monthly living expenses calculator to figure out how lenders calculate your expenses.

Additional Documents Needed In Special Situations

  • Gifted deposit: Gift letter
  • When a trust is involved: Two years of tax returns, financials and Notices of Assessment
  • Low doc loan: Letter from your accountant as alternative to financials
  • Defaults, judgements, court writs, bankruptcy or missed payments on your credit file: Letter explaining default
  • Self-Managed Super Fund (SMSF):
    • Certified copy of SMSF Trust Deed
    • Certified copy of Custodian Trust Deed
    • Last two years’ financial reports and income tax returns for all related entities supported by the income tax account tax portal. This is not required if the SMSF has just -been set up
    • For newly established superannuation funds, evidence of ability to meet stated super contributions; for example, personal tax returns and/or pay slips
    • Statements showing the deposit in your SMSF (such as a bank statement, super fund statement or share portfolio)

Preliminary Assessment

The preliminary assessment is a detailed process where brokers verify the details on the documents and calculate the risk to the lender for your home loan. Brokers and the team will prepare all the documents for submission. They will then send you the final documentation for review and signature. They might ask you to submit other documents to strengthen your application. During the assessment, brokers will:

  • Calculate your borrowing capacity
  • Find suitable lenders that can accept your situation
  • Compare the most suitable package and present you some recommendations
  • Identify any problems from a lender’s point of view
  • Prepare your compliance and final documents to review and sign before lodging the home loan application

Submitting Your Final Application To The Lender

Once the customer returns the signed forms, mortgage brokers will prepare to submit the application to the lender. They will upload it to the lender’s system or application portal. Lenders will provide a time frame to assess your application. They might request additional documents if there is missing information. Broker or loan processing specialists will reach out to you for information if required.


The approval process consists of these steps:

  • Lenders will assess your application and if they decide that you meet their lending guidelines, they will grant you a conditional approval or pre-approval. This is not a full approval and is valid for three months. You can apply for a pre-approval even if you have not found a suitable property.
  • If you already have a property you wish to purchase, a valuer will inspect it to check whether it is a high risk or a low risk for the lender. Lenders do not employ the valuers, they are separate entities.
  • If everything goes well, the lender will issue an unconditional approval, also known as formal approval. It is a confirmation that your home loan has been approved and you can borrow the amount stated in your application.

Note that issuing a pre-approval does not not obligate the lender to approve your loan. Before issuing a formal approval, they will conduct a credit check , do a thorough assessment of lending criteria for every borrower, and advise of any outstanding conditions that need to be met before formal approval is given.

For construction loans , this might add complexity because the final approval may be rolled back at times due to changes in your situation.

How To Overcome Home Loan Rejections: A Guide

9 Different Reasons For Home Loan Rejections, And Their Solutions

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How Long Does A Loan Application Take?

The lender and the complexity of the loan application determine the turnaround period. Some lenders want to see less information, while some want to see more. It can take 2-3 weeks, in general.

  • If the submission has been done with all the documents including a valuation report, it can sometimes get approved within 1-3 business days.
  • If there is no valuation report available, add another 3-5 business days for the valuation.
  • If it’s a self-employed deal, lenders tend to have longer turnaround periods.
  • If it’s for a hobby farm, a long-form valuation is done, which might take longer.

Loan Offer

After the loan has been formally approved, the lender will send you a loan offer document, including a contract for you to sign and accept. If you would like to consult your solicitor or conveyancer for legal advice before signing, you can do so. Brokers or lenders can also help explain the terms of the contract to you. After the loan documents have been signed and submitted, all the leg work has been done.


The final stage is settlement, where the lender certifies that your documents are in order and they can advance the loan. If you are purchasing a property, your solicitor/conveyancer will be informed about it. They will legally transfer the ownership from the seller to you. If you are refinancing, then your new lender will contact your current lender to repay the loan and take possession of the certificate of title. As soon as the loan is advanced, you will be notified.

Home Loan Experts’ Post-settlement Service

Did you know that we have a customer care team dedicated to looking after you, even after your home loan has been settled ? Home Loan Experts believes that a good mortgage broker should guide you throughout the life of your home loan. Not only do we answer all your post-settlement queries , we also help you make changes, additions and amendments to your loan type over the life of your loan. Here are some of the steps we take to offer you ongoing help and support.

Two Weeks After Settlement

We will be in touch with you after two weeks to make sure you understand the terms of the mortgage and how to make repayments. We’ll also ask for a copy of the settlement letter to confirm that the lender has not overcharged you.

Annual Review

We will contact you every year to review your mortgage and check whether you have had any problems.

Ongoing Help

We provide continuing service to our customers long after they have settled their loans, including:

  • Reviewing your interest rate
  • Switching loan products if requested
  • Monitoring the value of your property so you can make better decisions about accessing equity to buy an investment property or move house
  • Switching the date and frequency of your repayments to better suit your financial needs and commitments
  • Providing different resources and guides that help you make informed decisions

Who Is Involved In The Application Process?

There are many parties involved in the application process, including:

The First Step To Your New Beginning

Home Loan Experts has a commitment to getting the right home loan for your needs and this has helped us earn multiple industry and consumer awards. Our mortgage brokers have helped hundreds of customers navigate the application process and get approved for a home loan without any hassle.

Our expertise in specialist lending leads to tough home loans getting approved. Give us a call on 1300 889 743 or enquire online for free to start your new beginning with your dream home.