The home loan application process

While applying for a home loan will be slightly different depending on the lender you choose and whether you go through a mortgage broker, below is an overview of the usual process from submitting a home loan application to receiving approval:

  1. Buyer submits pre-approval application - obtaining pre-approval generally takes 48 hours, providing you have submitted all the required documentation. Lenders will examine your assets & liabilities, incomes & expenses, employment history, credit history and residence stability during this process. Pre-approval is valid for 3 months and can be extended by resubmitting documentation. If your application requires Lenders Mortgage Insurance, your lender will organise this for you.


  2. Buyer organises a conveyancer or solicitor - it is recommended to organise a conveyancer or solicitor to assist you with the Contract of Sale and mortgage documentation. If you have any questions regarding our documents, we can assist you.


  3. Buyer secures a property - congratulations! Once you are successful in securing a property, you will need to send through a copy of the signed Contract of Sale to your lending consultant.


  4. Paying your deposit

    • Auction - generally a 10% deposit will be required on the day of purchase. Ensure you have access to your funds prior to the auction date. A bank cheque is a common form of deposit at auctions.

    • Private sale - your offer will be placed conditionally and should be made subject to finance approval. The vendor generally allows two weeks for you to arrange the deposit and for your lender to complete a valuation ensuring the loan is formally approved.
  5. Home Insurance - settlement of your property cannot occur unless your lender receives a Certificate of Insurance prior to settlement, noting Bank First (or your lender) as Mortgagee. We can arrange premium Building and Contents Insurance with up to 3 months free cover until settlement, if you take out a policy through us.


  6. Property valuation - your lender will organise a valuation on the property with your real estate agent to ensure the loan-to-value ratio is sufficient. This can take up to one week, depending on access to the property. If the valuation meets criteria your loan will be formally approved. If the loan-to-value ratio is negative (i.e. the property value exceeds the loan amount), this may have an impact on the loan and could require a further savings contribution, or a family guarantee , and may increase the cost of Lenders Mortgage Insurance.


  7. Complete documentation - two sets of documents will need to be reviewed and signed – the Mortgage documents relating to the title of the property and the home loan contract relating to finance.


  8. First Home Owners Grant (FHOG) - for eligible new home owners, you can submit your FHOG application to receive a grant. Authorised agents, such as Bank First will lodge this on your behalf.


  9. Further savings contribution - if applicable, you will need to transfer any further savings contributions to your lender prior to settlement.


  10. Settlement - signed, sealed, delivered...move in!

Note: settlement timeframes typically vary from 30-90 days, and therefore so does the timeframe for the loan contract and mortgage documents. We work closely with our customers to ensure that everything is signed and ready prior to settlement date.