How Loan Does Home Loan Take

How Long Does the Home Loan Process Take?

Your Step-by-Step Step Guide for Australian Home Buyers

One of the most common questions people ask when buying a home is: “How long will this take?” The home loan process can feel long and complicated, but understanding each step makes it much easier. Let me explain the whole journey from start to finish, so you know exactly what to expect!

The Quick Answer

The entire home loan process typically takes anywhere from 2 weeks to several months, depending on your situation. Here’s a quick breakdown:

• Simple applications with all documents ready: As quick as 3-5 business days for approval
• Standard applications: 2-4 weeks from application to approval
• From approval to settlement: Usually 30-90 days
• Total time from start to getting your keys: Usually 6-12 weeks

But remember, every situation is different! Let’s break down each step so you understand the complete timeline.

Understanding the Home Loan Journey

The home loan process has several important stages. At Awesome Lending Solution, we guide you through each step to make sure everything runs smoothly. Here’s what happens at each stage and how long it typically takes.

Step 1: Privacy and Credit Guide (Day 1)

Time: 1 day

The very first step is receiving and signing our Privacy and Credit Guide. This is an important document that explains:

• How we collect and use your information
• Your rights about your personal details
• How we’ll check your credit history
• How we protect your privacy

Under Australian law, we must provide this to you before we start working together. Once you sign and return this document, we can begin personalizing our advice specifically for you!

What you need to do:

• Read the Privacy and Credit Guide carefully
• Sign it
• Return it to us (usually via email)

Top tip: Do this on the same day you receive it so we can move forward quickly!

Step 2: The Fact Find (1-3 days)

Time: 1-3 days

The Fact Find is the document where we collect all the important information about your money situation. This includes:

• Your income (how much you earn)
• Your assets (what you own, like savings, cars, or other property)
• Your expenses (what you spend money on each month)
• Your debts (any loans or credit cards you have)
• Your employment details
• Your living situation

How it works: We can do this in two easy ways:

1. Online: We send you a secure link to your email, and you fill it out when it’s convenient for you
2. Over the phone: One of our Awesome team members can fill it out with you while you chat

What you need ready:

• Recent payslips (usually last 2-3 months)
• Bank statements
• Details of any debts or loans
• Information about your current living costs

Top tip: Have all your documents ready before you start. This makes the process much faster!

Step 3: The Lender Comparison (2-5 days)

Time: 2-5 days

Once we have all your information, Albert (your mortgage broker) will do an initial assessment of your situation. This is where the magic happens!

What Albert does:

• Reviews all your financial information
• Works out how much you can borrow
• Compares loan products from over 40+ different lenders
• Finds the most competitive rates and features for your needs
• Prepares a list of suitable loan options

What you receive:

• A clear estimate of your borrowing power
• A comparison of different loan products
• Information about interest rates and fees
• Recommendations for which lenders would be best for you

What you need to do:

• Review the options Albert presents
• Ask questions about anything you don’t understand
• Choose which lender you’d like to proceed with

Top tip: Don’t just choose the lowest rate! Look at the whole package, including fees and features.

Step 4: File Invite (3-7 days)

Time: 3-7 days (depending on how quickly you can gather documents)

Once you’ve chosen your lender, it’s time to collect all the official documents we need for your application. We use a secure online portal to make this process safe and easy.

Documents you’ll typically need:

• Proof of identity (driver’s license, passport, Medicare card)
• Proof of income:
  • If you’re an employee: Last 2-3 payslips and most recent group certificate or tax return
  • If you’re self-employed: Last 2 years of tax returns and financial statements
• Bank statements (usually last 3-6 months)
• Proof of your deposit savings
• Credit card and loan statements
• Rates notices (if you own other property)
• Rental agreements (if you’re renting out property)

How it works:

• We send you an invite to our secure online portal
• You upload your documents when you’re ready
• The portal is safe and encrypted to protect your information
• You can upload documents bit by bit as you find them

Top tip: The faster you gather these documents, the faster we can move forward! Many people take 3-5 days to get everything together.

Step 5: Credit Assessment and Credit Proposal (1-2 days)

Time: 1-2 days

Now Albert reviews everything to make sure all the details are accurate and complete. This is a very important step!

What happens:

• Albert double-checks all your information
• He creates a summary of what will be sent to the lender
• This summary is called the Credit Proposal
• It shows the lender exactly why you’re a good borrower

What you receive: You’ll get a copy of the summary to review. This is super important because you need to check:

• All numbers are correct (the portal sometimes doubles up digits!)
• Your personal details are spelled correctly
• All information is accurate

What you need to do:

• Read the summary carefully
• Check every detail
• Sign and return it to us

Important: If anything looks wrong, tell us immediately so we can fix it before submitting to the lender!

Step 6: Loan Submission (1 day)

Time: 1 day

This is when we officially send your application to the lender!

What happens:

• Albert creates the complete application document for the lender
• He packages everything together (your forms, documents, and the credit proposal)
• We send it to you to review and sign
• Once you sign and return it, we submit everything to the lender

Top tip: Sign and return this as quickly as possible. Every day counts when you’re trying to buy a house!

Step 7: Loan with Credit Team (3-10 days)

Time: Usually 3-10 business days, but can vary

Your application is now with the lender’s credit team! This is when they review everything in detail.

What the lender does:

• Reviews your application and all supporting documents
• Checks your credit history
• Verifies your income and employment
• Assesses whether you can afford the loan
• May ask for additional documents or information

Different lenders work at different speeds. Some major banks like NAB can approve simple applications in under 1 business day, with 35% of eligible customers approved in under one hour. Westpac typically takes 2-4 days, while more complex applications can take 4-7 business days.

What might slow things down:

• Complex income situations (like being self-employed)
• Multiple income sources
• Poor credit history
• Missing documents
• High volume of applications at the lender

What you can do:

• Be ready to provide extra documents if asked
• Answer any questions quickly
• Be patient – this is a thorough process!

Step 8: Conditional Approval (Same day to 3 days)

Time: Can happen immediately after credit assessment, or may take a few more days

Congratulations! You’ve received conditional approval! This is a really exciting milestone.

What conditional approval means:

• The lender has agreed to lend you money
• There are still some conditions that need to be met
• You can start looking at properties within your budget
• You’re not quite at the finish line, but you’re close!

Common conditions include:

• Providing a signed Contract of Sale (once you find a property)
• Property valuation
• Updated bank statements
• Proof of insurance
• Evidence your deposit is ready

Important things to know:

• Conditional approval is usually valid for 90 days (3 months)
• You can now make offers on properties with confidence
• When making an offer, you’ll need a “subject to finance” clause

About the finance clause: When you find a property and make an offer, you’ll need time for the lender to do their final checks. Before signing the Contract of Sale, confirm with Albert how many days you’ll need for the finance clause (usually 14-21 days). This protects you if something goes wrong with the final approval.

Step 9: Property Valuation (3-5 days)

Time: Usually 3-5 business days

Once you’ve found a property and signed a Contract of Sale, the lender needs to check that the property is worth what you’re paying for it.

What happens: If you’re borrowing 80% or less, some lenders might just accept the contract price. Others will do a “kerbside valuation” where they drive past to confirm the property exists – this can give you approval the next day. If a full valuation is required, it typically takes 3-5 business days.

Types of valuations:

1. Desktop valuation: The valuer checks recent sales in the area without visiting (fastest)
2. Kerbside valuation: The valuer drives past to check the property (1-2 days)
3. Full valuation: The valuer goes inside the property to inspect it thoroughly (3-5 days)

What can delay this:

• The seller or real estate agent taking time to allow access
• The property being in a regional area
• Unusual property types (like farms or unique homes)

Top tip: Stay in contact with the real estate agent to make sure the valuer can access the property quickly!

Step 10: Getting a Conveyancer

Time: Should be organised as soon as you have conditional approval

If you don’t already have a conveyancer or solicitor, you’ll need one at this point. They handle all the legal paperwork for buying your property.

What a conveyancer does:

• Reviews the Contract of Sale before you sign
• Conducts searches on the property (to check for any issues)
• Handles all the legal documents
• Arranges settlement day
• Makes sure everything is legal and correct

Cost: Usually $1,000 to $3,000

Top tip: Choose your conveyancer early! They can help you before you even make an offer on a property.

Step 11: Formal Approval (2-7 days after valuation)

Time: Usually 2-7 days

This is the big one! Formal approval means the lender has officially agreed to give you the loan.

What this means:

• All your paperwork has been checked and approved
• The property valuation is satisfactory
• All conditions have been met
• You’re definitely getting the loan!

What happens next: The lender will prepare your loan contract documents and send them to you to sign. This can take anywhere from 2-7 days.

What you need to do:

• Review the loan documents carefully with your conveyancer
• Make sure you understand:
  • Your interest rate
  • Your monthly repayments
  • All fees and charges
  • The loan terms and conditions
• Sign and return the documents as quickly as possible

Top tip: Read everything carefully, but don’t delay! The faster you return signed documents, the faster you can get to settlement.

Step 12: After Formal Approval (Days before settlement)

Time: Happens in the weeks leading up to settlement

There are several important tasks to complete before settlement day:

Your Conveyancer’s Tasks:

• Finalizes all legal documents
• Organizes the settlement date (this is agreed between you and the seller)
• Coordinates with the lender’s solicitors
• Prepares settlement statements showing all costs

Your Tasks:

1. Organize Home and Contents Insurance This is critical! Your lender will not release the loan money without a Certificate of Currency (proof of insurance). This policy MUST be active from settlement day or earlier.

The insurance needs to meet the lender’s requirements, which usually include:

• Building insurance for at least the loan amount
• Must start from settlement day
• Must show the lender as an interested party

2. Arrange Extra Funds Your conveyancer will tell you exactly how much extra money you need for:

• Stamp duty
• Legal fees
• Adjustments (like rates and water already paid by the seller)

We suggest you finalize all these financial details 48 hours before settlement day.

3. Book Your Removalists Don’t book movers for 9:00 AM on settlement day! Settlements often happen in the afternoon (around 2:00 PM). Book them for late afternoon or, even safer, the next day.
4. Organize Utilities Contact providers to:

• Connect electricity, gas, water, and internet for your settlement date
• Get final readings and close accounts at your old property

5. Follow Up We’ll also follow up with the lender’s solicitors to make sure they’re ready for settlement. We stay on top of everything so you don’t have to worry!

Step 13: Settlement Day! (The Big Day!)

Time: Usually 30, 60, or 90 days after signing the Contract of Sale

Settlement day is when you officially become a homeowner! Here’s what happens:

What Happens Behind the Scenes

In 2025, over 95% of settlements are done electronically via PEXA (Property Exchange Australia). This means you don’t need to be there – your conveyancer handles everything with your signed authority.

The digital process (happens in minutes!):

1. Your lender releases your loan money into the settlement system
2. The seller’s bank receives the funds and pays off their mortgage (if they have one)
3. The seller receives their money (the sale price minus their mortgage and costs)
4. Stamp duty is paid to the government automatically
5. The property title transfers to your name digitally
6. The Land Titles Office registers you as the new owner

With PEXA, the funds transfer, clear, and confirm in minutes – much faster than the old days of waiting 3 business days for bank cheques!

When You Get the News

Your conveyancer will call you when settlement is complete (this usually happens in the afternoon). They’ll then contact the real estate agent to authorize them to release the keys to you!

Getting Your Keys

Once your conveyancer gives the all-clear, you can go to the real estate agent’s office to collect your keys. Bring your ID!