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How to apply for a home loan

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Buying your own home is one of the most important financial decisions you'll ever make.

Ready to buy a home but don’t know where to start? The first step to a successful home purchase is figuring out how to finance it. Applying for a home loan can be tricky and overwhelming, especially for novice homebuyers. In this quick guide, we break down the home application process for you! 

Read on to learn how to apply for a home loan in Australia. 

Step 1: Get your home loan requirements sorted

Lenders have their own requirements and policies depending on the loans they provide. Save yourself time and effort; see if you see if you meet the basic requirements before going through the loan application process. 

Common eligibility requirements when applying for a home loan include:

  • The borrower must be at least 18 years old.
  • The borrower must be an Australian citizen or permanent resident.
  • The borrower must be in a de facto relationship or married to an Australian citizen or permanent resident (if not a citizen or resident).

Prepare the following documents beforehand so you can proceed with your loan application immediately:

  • Personal details or identification (passport, driver's license, birth certificate, citizenship certificate, etc.)
  • Property details (value, location, type, age, and size of the property)
  • Proof of income (recent payslips, bank statements, superannuation, foreign income, etc.)
  • Proof of employment
  • List of assets and liabilities
  • Existing loans or debt

These documents, as well as your credit score and financial history, will be used by the lender to determine whether to approve your loan application or not. For those applying with a guarantor, their personal and financial details should be included in the application. 

If you want to take advantage of the First Home Owner Grant (FHOG), make sure to include your completed FHOG application when you apply for a home loan. 

Step 2: Fill out your application online

Some lenders may require you to visit their office to file your home loan application in person. However, lenders like loans.com.au offer borrowers the convenience of filling out their loan applications online.

All you need to do is input your details and complete a quick pre-qualification. This is to ensure that you qualify for the home loan before proceeding with your application. Or speak to one of our friendly lending specialists and complete your loan application over the phone.

Once done with the online application, we’ll contact you at your preferred time and discuss the information you’ve provided. You can also check if you pre-qualify for a home loan online.

Step 3: Provide the required documents

You’re going to need all the documents you’ve prepared earlier. Avoid delaying your application by having everything ready to go. Nothing is more frustrating than holding up your home loan application for a few days because of one missing document.

How you submit the documents differs per lender. Some lenders may want you to hand over the documents in person. At loans.com.au, we do everything online with onTrack, an easy-to-use and secure application management system. Upload your documents anywhere, anytime.

Activate your onTrack account and upload the needed documents such as payslips, bank statements, personal information, assets and liabilities and the like. The intuitive user interface means you won’t have trouble figuring out what to do next.

If you have any questions or need help, send a message or talk to one of our support agents through the online chat anytime. You can come back to your application whenever you want.

Step 4: Receive approval and sign your home loan offer

Once your home loan application is assessed, you’ll receive the final approval letter from the lender. If your home loan application is more complex or you haven't provided all the necessary documents, there may be a bit of back and forth with the lender before they can finalise approval.

When applying at loans.com.au, the final steps of the home loan application process are fairly straightforward. All you need to do is check your onTrack account for the final approval, mortgage documents, and loan agreement.

Sign the relevant documents directly in onTrack and submit them. We’ll call you once we’ve received the signed documents to make sure everything is in order.

Step 5: Home loan settlement

Congratulations! You have reached the settlement stage. At this point, your home loan application has been approved and the funds you borrowed will be used to purchase your property.

The settlement stage is where all the financial and legal loose ends are tied up, and the property ownership is transferred from the previous owner to you if you’re purchasing a new home, or where the title is transferred from your previous lender to your new lender if you’re refinancing. The settlement agent will typically meet with your lender and the seller/previous lender's representatives to review, exchange and sign all the documents.

The lender then withdraws the money from your approved loan balance and pays the seller or your previous lender. The title office then receives the signed documents and registers the new details. After settlement occurs, you will generally be contacted by your new lender to confirm your new loan details and be set up with your online access. A month after settlement is when you will typically begin making your home loan repayments.

Apply for a home loan with loans.com.au!

If you want a simple and stress-free home loan application, loans.com.au has got your back! Our online home loan application takes only a few minutes to complete. And our friendly lending specialists will be there to guide you every step of the way.

Check out our range of low-rate home loans or talk to our lending specialists by calling 13 10 90 to find out more.

Apply now


What do I need to do when looking for home loans?

Do your research on what home loan would best suit your home-buying situation. Consider additional fees, terms, features, interest rates, and the like before committing to a home loan.

What are lenders looking for in my application?

Lenders will want to see your proof of income to make sure you can afford the mortgage repayments. If you're employed, this will include evidence of pay slips and proof of employment.

How much can I borrow for a home loan?

It depends on the lender and your financial situation. You can use a borrowing power calculator to see an estimate of how much you can borrow.

How much should I save for a deposit on a home loan?

While some lenders will lend against a 5% deposit, the ideal amount is 20% or more to strengthen your home loan application and improve your chances of being approved. If you can save up more than 20% you can avoid paying Lender’s Mortgage Insurance, and potentially get a lower interest rate.

About the article

As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.

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