How to Get Approved for a Home Loan Faster

Home loan approvals usually take 2-6 weeks. But if you're organized, you can get conditional approval in 3-5 days.

Here's what banks look for and how to speed things up.

What banks check

Banks approve you based on:

1. Income — Can you afford the repayments?
2. Expenses — What are your living costs?
3. Credit history — Have you missed payments?
4. Deposit — How much can you put down?
5. Property valuation — Is the property worth what you're paying?

Documents you'll need

Have these ready before applying:

Proof of identity:

• Driver's license or passport
• Medicare card (for 100-point check)

Proof of income:

• PAYG employees: Last 2 payslips + last 2 years tax returns
• Self-employed: Last 2 years tax returns + business financials
• Casual/contract: Last 3-6 months payslips + employment letter

Proof of deposit:

• Last 3 months bank statements
• Proof of genuine savings (if required)

Proof of expenses:

• Credit card statements
• Loan statements (car, personal loans, HECS)
• Living expenses declaration

How to speed up approval

1. Get pre-approval first

Pre-approval (or conditional approval) means the bank approves you in principle before you find a property. This usually takes 3-5 days.

Benefits:

• Know your budget before house hunting
• Bid at auctions with confidence
• Once you find a property, final approval is faster

2. Have all documents ready

The biggest delay? Chasing missing documents. Have everything uploaded or scanned before you apply.

3. Clean up your credit file

Check your credit score (free on Credit Savvy, Equifax). If you have defaults or missed payments, explain them upfront or fix them before applying.

4. Close unused credit cards

Banks assess your borrowing capacity based on your credit limits, not your balances. A $10k credit card you never use still counts as potential debt.

Example: $10k credit limit = $300/month potential repayment = reduces borrowing capacity by ~$60k.

Cancel cards you don't use.

5. Show genuine savings

Banks want to see you've saved your deposit over 3-6 months (not a one-off gift). Keep deposits in the same account for at least 3 months.

6. Use a broker

Brokers know which lenders approve quickly and which are slow. They can fast-track applications through lenders they have relationships with.

7. Apply online

Online lenders (Athena, Unloan, Tic:Toc) approve faster than traditional banks. Some offer 1-day pre-approvals.

Common delays (and how to avoid them)

1. Missing documents

Solution: Upload everything upfront. Don't wait for them to ask.

2. Self-employment

Solution: Have 2 years of financials ready. Some lenders need less (ask a broker).

3. Credit issues

Solution: Address defaults or missed payments before applying. Write a letter explaining what happened.

4. Property valuation

Solution: This takes 1-2 weeks. You can't speed it up much, but online lenders use automated valuations (faster).

5. High living expenses

Solution: Banks use HEM (Household Expenditure Measure) to estimate your living costs. If you claim low expenses, have proof (bank statements showing actual spending).

How long each stage takes

• Pre-approval: 3-5 days
• Property valuation: 1-2 weeks
• Final approval: 1-2 weeks
• Settlement: 4-8 weeks (from contract signing)

Total: 6-12 weeks from application to keys.

Can you get same-day approval?

Some online lenders offer same-day conditional approval if:

• You're PAYG employed
• You have 20%+ deposit
• Clean credit history
• All documents uploaded

But final approval still takes 2-4 weeks (waiting on valuation).

What to do while you wait

• Don't change jobs (banks want 3-6 months employment)
• Don't apply for new credit cards
• Don't make big purchases on credit
• Keep saving (shows financial discipline)

If your application is rejected

Ask why. Common reasons:

• Insufficient income
• Too much debt
• Credit issues
• Not enough genuine savings

Fix the issue and try again with a different lender (each bank has different criteria).