Blog How long does it take to get a home loan approval?
It is a good idea to apply for home loan pre-approval before you start looking for a property to buy.
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How long does it take to get a home loan approval?

17 June 2021
How long does it take to get a home loan approval?

Find out if you qualify

Every borrower, lender, and loan is unique, so loan approval times can vary widely. Generally speaking, for a basic scenario where the clients have prepared their supporting documents, a home loan approval can be sought in as little as 3 to 5 business days.

More complex situations will obviously take a longer time to get an approval than simple loans. The standard process for applying for a home loan is as follows.


Getting a pre-approval on your home loan can make the process much quicker. You’ll know the maximum amount you’re allowed to borrow and what your mortgage repayments will be. Also, this will give you an idea on what type of properties you can purchase and in what location. Going through the pre-approval stage early on will save you time in the home loan approval process later. This can be done within the day with your home loan lender or in minutes online with

Home loan pre-approval times are valid for a given period, usually three months but some lenders allow up to six months. If you don't manage to find a property within this time and the pre-approval time frame has expired, you can apply for home loan pre-approval again.

Whether you're an investor, a second home buyer or a first home buyer, home loan pre-approval is an important first step in the home buying journey.

Submitting your application

To get a home loan, you’ll need to fill out an application form provided by your lender, then you need to submit necessary documents supporting your financial information including your income, expenses, and liabilities. If you get a loan with you can do this all online at a time of your convenience. You will then need to speak with a mortgage specialist to review your application and help you choose the most appropriate loan.

The documents most lenders ask for are:

  • Payslips for the last 3 to 6 months. If you’re self-employed, you need to submit 2FY of personal and business tax returns or full financial statements for the business
  • Evidence about other sources of income such as a rental property
  • Bank statements such as savings accounts, and term deposits
  • Statements of current debts and expenses such as credit cards, HECS debts, phone bills, and rent to name a few.

Once you’ve submitted the documents, your lender will assess your home loan application. This may take 3 to 5 business days. If you don’t have or can’t provide all of the documents needed, your home loan approval will take a longer time.

Property valuation

After reviewing your application, your lender will then arrange for a property valuation on your chosen home. This process can take 3 to 5 business days, because after valuation, the person will need to send in the report and your lender will review the valuation.

Paying for Lender’s Mortgage Insurance

If you borrowed more than 80% of the value of the property, you will be required to pay Lenders Mortgage Insurance or LMI. This may take 1 to 2 business days after the property valuation has been received.

Loan Approval

If your property valuation falls within the expected range, the credit check is positive, and if LMI approval has been obtained your home loan will be approved. You will then be sent an approval letter for your loan.

The average time for formal approval takes about four to six weeks from submitting the application to your lender, to reaching settlement on the property.

What if my home loan is not approved in time?

If your home loan approval is delayed, it could mean that you miss out on scoring your dream home because you're unable to bid at auction or submit an offer. If your lender is dragging their heels (un extremely unlikely event for us) the first step you should take is to contact the bank to see what the hold up is.

It may be as simple as lengthy processing times if there has been a deluge of applications, or your application may be missing some important documents. If required, we will work with you to request an extension from the vendor.

What do you need for fast home loan approval?

To reduce the risk of delays, you should ask the lender what the processing times are and make sure your home loan application is as complete as possible by including all documentation.

What happens when your home loan is approved?

After your home loan has been approved, a home loan contract will be issued. At this stage of final approval you should read through all the documentation and make sure the details are correct.

After you've confirmed all the details are correct, you should sign the contract so your conveyancer or solicitor can then prepare for settlement. The lender will then attempt to contact the discharging company to settle the loan.


The final stage in the home loan approval process. Settlement is where you contact your conveyancer or solicitor to arrange the necessary funds to complete the purchase. After the settlement, your lender will give you your home loan details, repayment amount, and your repayment schedule.

Get started now with your home loan application by applying for a pre-approval with