The home loan process timeline: pre-approval to settlement

Step-by-step home loan timeline

Timings below are realistic Australian averages. Your file can move faster — the biggest lever is having every document ready before the application is lodged.

1. Step 1 · Prepare Day 0 — 15 minutes

   Free 15-minute strategy chat

   We map your goal, deposit, income type and timing, then tell you which lenders will actually say yes before anything is submitted or your credit file is touched.

   • No credit enquiry at this stage
   • Rough borrowing power and purchase budget
   • A shortlist of 2–3 suitable lenders

   Book your 15-minute chat
2. Step 2 · Prepare 1 – 3 days

   Document collection & borrowing power

   We collect payslips, bank statements, ID and liability details, then run your numbers through each lender's own servicing calculator — because borrowing power can vary by $150,000+ between lenders on identical income.

   • 2 recent payslips (or 2 years tax returns if self-employed)
   • 3 months of transaction and savings statements
   • Credit cards, personal loans, HECS and car leases listed

   Estimate your borrowing power
3. Step 3 · Pre-approval 2 – 10 business days

   Pre-approval submitted and issued

   The lender credit-assesses you and issues a conditional pre-approval up to a maximum loan amount. Most pre-approvals are valid for 90 days and can usually be extended once with updated payslips.

   • Fast lenders: 24 – 48 hours. Major banks: 5 – 10 business days
   • Valid 90 days (extension usually available)
   • System-only pre-approvals are weaker — we push for fully assessed
4. Step 4 · Buy 2 weeks – 6 months

   House hunting and making an offer

   This is the part you control. With pre-approval in hand you can bid at auction or negotiate privately knowing exactly where your ceiling sits — and we sanity-check each property for lender acceptability before you commit.

   • Auctions are unconditional — finance must be sorted first
   • Private sales can include a finance clause (usually 14–21 days)
   • Check apartment size, zoning and building type with us first

   Check your total purchase costs
5. Step 5 · Approval 3 – 10 business days

   Formal application and valuation

   Once the contract is signed we lodge the full application. The lender orders a valuation of the property and, if your deposit is under 20%, the loan also goes to the LMI insurer for approval.

   • Desktop valuations return in 24–48 hours; full inspections 3–5 days
   • A low valuation can reduce your loan — we can dispute or reorder
   • Under 20% deposit adds an LMI or scheme assessment step

   Estimate your LMI
6. Step 6 · Approval Typically week 3 – 4

   Unconditional (formal) approval

   Unconditional approval means the lender is fully committed: valuation done, LMI approved, all conditions cleared. This is the milestone that satisfies your finance clause — never waive it before you have it in writing.

   • Conditional approval ≠ unconditional approval
   • Notify your conveyancer the same day
   • Don't change jobs or take on new debt after this point
7. Step 7 · Settlement 3 – 7 days

   Loan documents signed

   The lender issues your loan contract and mortgage documents. We walk you through the rate, fees, offset and repayment structure line by line before you sign, then return them for certification.

   • Confirm offset / redraw and repayment type now
   • Most lenders accept digital signing
   • Arrange building insurance — lenders require it before settlement
8. Step 8 · Settlement 30 – 90 days from contract

   Settlement and keys

   On the settlement date the lender releases funds, your conveyancer completes the electronic transfer of title, and the property is legally yours. Repayments usually begin one month later.

   • Standard settlement in Australia is 30, 42, 60 or 90 days
   • Final funds (deposit balance and duty) must be cleared beforehand
   • Do a pre-settlement inspection in the final week

   Model your repayments

What slows a home loan down

Next steps