The Home Loan Process, Start to Finish
Buying a home in Australia follows seven clear stages. Here is exactly what happens at each one, what you need to do, and where a broker takes the load off your plate.
The home loan process is not complicated once you can see all of it at once. It is seven steps, in order, each one moving you closer to the keys. Here is the full journey, every stage explained.
Work out your borrowing power
Before you look at a single property, find out what you can realistically borrow. This sets your price range and stops you falling for a home outside your reach. Your income, expenses, existing debts, and credit card limits all affect the number.
A broker can compare how different lenders assess the same situation, which often changes the figure by tens of thousands of dollars.Get your deposit and finances in order
Build your savings toward a deposit, and budget for the upfront costs on top, such as stamp duty, conveyancing, and inspections. Reducing or closing unused credit card limits and clearing small debts can lift your borrowing power before you apply.
We help you see your true upfront costs and which low-deposit options, grants, or guarantees you may qualify for.Get pre-approval
A lender reviews your income and situation and indicates how much they are willing to lend, subject to conditions. Pre-approval gives you a firm price range and lets you move fast when the right place comes up. Agents and sellers also take pre-approved buyers more seriously.
We package your application to the lender most likely to approve you, so your pre-approval is solid rather than shaky.Find a property and make an offer
Now you search knowing your exact budget. You can buy by private treaty, where you negotiate a price, or at auction, where bidding is unconditional. Either way, stay inside your approved range and factor in the upfront costs.
We are on call during this stage to confirm a property fits your approval before you commit.Get formal approval
Once you have a property, the lender arranges a valuation and checks your documents in full, then issues unconditional approval and a formal loan offer. This is the lender’s final yes on that specific property.
If a valuation comes in low or a condition trips you up, we manage it with the lender so the deal stays on track.Sign loan documents and complete the legals
You sign your loan contract, and a conveyancer or solicitor handles the legal transfer of the property, including searches and the contract of sale. This stage runs in the background while settlement is arranged.
We coordinate with your conveyancer and the lender so the paperwork lines up for settlement day.Settlement
On settlement day, the funds are exchanged, the property title transfers into your name, and you collect the keys. The home is officially yours, and your loan repayments begin from here.
We stay with you beyond settlement to review your loan over time and make sure it keeps working for you.Start with your borrowing power
Everything else flows from knowing your number. Use our free calculator to get a realistic estimate, then we will guide you through the rest of the journey from there.
Check My Borrowing PowerCommon questions about the process
How long does the home loan process take in Australia?
From pre-approval to settlement, a typical purchase takes around six to twelve weeks, though it varies. Pre-approval is often arranged within a few days, while the settlement period is set in the contract of sale, commonly 30 to 60 days.
Do I need pre-approval before I start looking?
It is strongly recommended. Pre-approval tells you your price range, lets you act quickly when you find the right property, and signals to agents and sellers that you are a serious buyer.
What is the difference between pre-approval and formal approval?
Pre-approval is an indication of how much a lender is likely to lend you, subject to conditions. Formal or unconditional approval is the lender’s final yes on a specific property, given after they have valued it and checked all your documents.
General information only. This page explains the home loan process in general terms and does not take your personal circumstances into account. It is not financial advice. Lenders apply their own policies, and your situation may differ. Always confirm your figures and options with a licensed mortgage broker. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.