If you're planning on buying a property and need a home loan, you might be wondering how long the process takes.
First, it's important to understand that different banks have different service levels, and at any given time, there are 50-100 banks in Australia. Therefore, the time it takes to process a home loan application can vary depending on the bank.
The rule of thumb is that a good bank usually takes between five to seven business days to approve a home loan. However, there are caveats to this. During busy periods like December, Easter, and the end of the financial year, turnaround times can blow out. Additionally, if your application is more complex, it may take longer to process.
For example, if you're a simple business owner with one company, your application might be straightforward. However, if you're a multi-business owner with a trust, family, different styles of income, or multiple properties, your assessment can take longer than normal.
Therefore, it's crucial to give yourself as much time as possible when looking for a home loan application. While the bank's processing time might be five to seven days, there's a process around it, including getting documents, discussing how much you can borrow, and researching banks. Depending on how quickly you can provide the required information, this can add an additional week on one end.
Therefore, it's essential to get in touch with a good quality mortgage broker or bank to understand their process, timing, and documentation requirements. Providing the required information promptly will enable them to assess your application faster and help you move on with buying a house.
In conclusion, the time it takes to process a home loan application varies depending on the bank, complexity of the application, and timing. It's crucial to give yourself as much time as possible and get in touch with a good quality mortgage broker or bank to understand the process and timing requirements. By doing so, you'll increase your chances of obtaining a home loan faster and buying your dream property sooner.