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

Every lender has their own loan approval timeline, which can vary widely depending on the borrower and the type of loan. Generally, if you’ve prepared all the supporting documents and there are no issues during the application process, you can get unconditional home loan approval as quickly as three to five business days after submitting the requirements. Applying for more complex loans can take longer than a standard home loan. 

For online lenders like loans.com.au, since everything is done online, your application could get approved much more quickly. More traditional lending establishments may require borrowers to submit their application in person, which could take longer to complete. 

Here's what you can expect when you apply for a home loan at loans.com.au: 

How long does home loan approval take? 

The entire home loan application process can take around five to eight days or more, from the initial pre-approval application to receiving final loan approval.  

The loan settlement and finalisation of the home purchase can take around one to four weeks, as it includes the property valuation, LMI application (if applicable), final home inspection, and the like. 

The timelines above are just estimates assuming a straightforward loan application. If you’re asked to bring extra documents, have requirements missing, or are applying for a more complex home loan type, your loan approval could take longer than the estimates above. 

Stages of the home loan application process 

Applying for a mortgage is a big step. To avoid feeling overwhelmed, it’s best to familiarise yourself with the process. Here’s a quick overview of the home loan application process. 

Find out if you qualify 

Before anything else, you need to know if you’re eligible to apply for a home loan. First, look at the lender’s eligibility and home loan requirements. When reviewing your application, the lender will consider your financial situation to assess your ability to repay the loan. You can use an online borrowing power calculator to get an estimate of how much you could borrow. 

Getting a pre-approved home loan 

Applying for a pre-approved home loan can also help you with your mortgage application. With a pre-approved loan, you’ll know the maximum amount you’re allowed to borrow and what your mortgage payments could look like. 

Knowing your estimated maximum loan amount can help you choose your property. Going through the pre-approval stage early on will save you time in the home loan approval process later. You can finish your pre-approved loan application within minutes online with loans.com.au. 

Submitting your application 

When you apply for a home loan with loans.com.au, you can complete your application form online anytime at your convenience. Or you can call our friendly lending specialists, and they can complete the form for you. 

Have the following documents ready to avoid delays and ensure a smooth application process: 

• IDs and/or documents with your personal information. 
• 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. 
• Documents regarding other sources of income, such as rental property. 
• Financial documents, including bank statements for savings accounts and term deposits. 
• Statements of current debts and expenses, such as credit card bills, HECS debts, phone bills, rent, and similar expenses. 

Once you’ve submitted all the needed documents, your application will be assessed. This may take around three to five business days. If you don’t have or can’t provide all the documents needed, your home loan approval may take longer. 

Receiving loan approval 

You’ll know when your home loan is approved when you receive an update from your lender. In loans.com.au’s case, you can check the onTrack for updates on your application. 

If your home loan is approved, you’ll receive final approval, mortgage documents, and a loan agreement, which you will need to sign. Other documents you’ll receive are: 

• Letter of Offer – This contains the conditions and details of your home loan. 
• Witness acknowledgement – A document to be signed by a third party. 
• Disbursement form – Proof of funds from your lender. 
• Loan payment form – This has the information on when repayments will be made. 

After reading through the documents and confirming all the information is correct, you’ll sign them and send them to your conveyancer or solicitor to prepare for settlement. 

Settlement 

Property settlement is the final stage of the home loan process. Settlement is when you contact your conveyancer or solicitor to arrange the necessary funds to complete the home purchase. This can take longer due to inspections, further negotiations between the home buyer and seller, or any delays on the seller’s side. 

Home loans with low rates and great features 

Applying for a home loan can be easy and convenient, especially when you’re working with loans.com.au. Check out your home loan options or get in touch with us by calling 13 10 90 to learn more. With a range of options and features available, finding the perfect home loan. If you’re ready to get started, you can apply online today! 

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