The home loan application process in 4 steps

The home loan application process can seem confusing and stressful, particularly if you’re waiting on approval to make a home purchase unconditional. 

Couple looking for first home

To help take some of the unknown out of your home loan application, we've put together 4 steps that your application will go through in a simple graphic. We've also explained the home loan application process in more detail below.

Step 1: Ready for a home loan?

The initial meeting

It's a great idea to start with a meeting over the phone or face-to-face with a lending specialist. We'll be able to chat to you about what you are looking for, the types of products available, the fees and interest rates associated with each and what it will mean to have a mortgage for you financially. Most importantly we will then be able to offer you a product based on your needs.

This is also a good time to discuss the amount of money you want to borrow and how much you have for a deposit, as this will impact your LVR (loan to value ratio) and could determine available interest rates and extra charges, such as LMI (lenders mortgage insurance).

Make sure you take the time to ask your lending specialist to explain anything along the way - as no question is silly - especially when lots of lending jargon could be involved.

Remember pre-approval

Remember, we offer a pre-approval service so you can shop for a property with more confidence. To organise a home loan pre-approval enquire online, call 13 14 22 or drop into your nearest branch and chat with one of our lending specialists. 


Step 2: Submission of Home Loan Application

Fill out the application

Once you’ve decided on the right product based on your needs you then have the option of applying for the home loan. Your application will be filled out and loaded onto our system. At this time forms will need to be signed, and a valuation of the property will be ordered if needed.

Loan application submitted

Once we have all the necessary details for the loan application, it will be submitted into our system for assessment. Download our handy Applying for a Home Loan help guide to make sure you’ve got what you need.


Step 3: Loan approval and signing the contract

Your loan is assessed

When our credit department is assessing a loan, we look at your ability to repay the loan including interest, your credit history and a number of other lending criteria. For more information about what lenders look for when assessing a loan, check out How much can I borrow.

If the loan has been approved

Once all your supporting documentation has been submitted, loan approval usually takes 1-2 weeks. Your lender can keep you updated along the way.

You will be notified promptly and informed of any conditions, for example, subject to a satisfactory valuation of your property. If the application is a re-finance then you will need to complete and return a discharge form. 

Loan documents prepared

Once your loan has been approved the loan documents will then be prepared by our credit team.  Then, once the documents are prepared, you will be contacted to collect them from the branch.  If you live Interstate your documents will be posted to you.

 The original documents will need to be signed by all borrowers and/or guarantors and some of the documents will also need to be witnessed by a qualified witness, such as a Justice of the Peace. There may be a deadline for the return of documents. Check with your lender to see if any will apply. If you live interstate the documents will need to be sent back directly to our credit department.

Documents checked by the credit department

Once the documents have been received  by our Credit Department, they check to ensure all documents have been correctly signed, witnessed and returned.  They will also liaise with your Solicitor/Conveyancer to obtain any other documents required for settlement (eg. copy of Transfers, cheque directions).  


Step 4: Settlement and your new key


If you are purchasing a property we work on the specific settlement date as outlined in your contract of sale. If your loan application is for re-financing then the settlement date will depend on the timeframe stipulated by your previous bank. There may be a minimum notification period for them to have the documents ready to settle on their end which could affect the settlement date.

Important! Make sure you have the necessary funds cleared in your account for the day of settlement. A loan specialist can help you with this if you are unsure. 

Related tips 

Costs associated with buying a property
Here's 8 costs to consider when purchasing a property.
How much money can I borrow for a home loan?
How much money you can borrow will depend on your financial situation, your mortgage repayments, the type of property and your overall application.
What is LVR?
Learn more about Loan to Value Ratio (LVR), how it’s calculated and what effect it can have on your mortgage.
Was this helpful?