Home Loan Approval Time: Don’t Lose the Property You Want While the Bank Takes a Number

There's a popular bank which today quotes service levels at:

• 30 business days for formal approval on government scheme loans

• 26 business days for other new loans

Honestly. Who knows how the market can change in that space of time (not to mention giving you a nervous breakdown)?

Approval time matters. Choose a lender that can move when you’re ready to buy.

If you’re trying to buy property, home loan approval time is the difference between “We got it!” and “someone else nabbed it while we were still at the branch".

Approval time is critical when you’re buying property

Property transactions have deadlines:

• finance clause expiry

• auction & settlement dates

• vendor patience and motivation

  
  

If your lender’s turnaround time is longer than your finance clause, you’re relying on hope....not a strategy.

If you’ve applied directly with your bank, you're at the mercy of their queue. By the time you realise you need to change lenders, you’ve already lost weeks.

Government scheme loans can be slower

The government scheme loans are helpful for many first home buyers. They involve extra checks. Depending on the lender, they can require:

• additional eligibility verification

• extra internal approvals

• more manual assessment

• stricter document review

And if your bank is quoting 30 business days, that should be considered before you sign a contract.

The bigger problem is getting trapped with a slow lender

Most people compare lenders based on rate and features.

Just as importantly, lenders also differ on:

• how fast they pick up a file

• how they handle PAYG plus bonus, overtime, commission, or multiple jobs

• how they treat self-employed income, trusts, and more complex structures

• whether they can meet tight timeframes without issues at every turn

  A slightly cheaper rate is of no comfort if you lose the property.

How I keep clients out of the vortex

Part of my work is matching your loan to a lender that can:

1. approve the loan based on your actual scenario, not a calculator fantasy

2. approve it fast enough to suit your buying timeline

If speed matters, I look at current lender turnaround times, as well as which credit teams are functioning efficiently.

When you’re buying, options are everything. If you go direct to one bank, you're minimising your options.

How to reduce your home loan approval time

How you can affect this positively:

1) Get assessed properly before you look seriously

“Pre-approval” varies wildly. Some are fully assessed. Some are computer-generated.

If you’re actively looking, you want an application that has been properly reviewed, with documents checked and the lender’s position clear.

2) Have documents ready before you need them

The fastest approvals come from tidy files. Missing payslips, unclear statements, and last-minute surprises add days and weeks.

3) Don’t choose a lender on rate alone

If a lender is 0.1% cheaper but takes an extra three weeks, the real cost might be the property you miss.

4) Tell me your real deadlines

Auction date, contract date, finance clause expiry, settlement. If I know the timeline, I can choose lenders that will meet it.

5) If you’re using a government scheme, start earlier than you think

Schemes are brilliant when planned properly. Get moving on them sooner than later if you're wanting to use them.

In a moving market, home loan approval time is vital. If a lender is quoting 26 to 30 business days to formal approval, that changes what you can offer, how confidently you can negotiate, and whether you can secure the property at all.

If you’re buying, upgrading, investing, or planning a purchase, message me early. A quick chat can save you weeks of mental gymnastics and a lot of unnecessary stress.

General information only. Every scenario is different and timeframes depend on your circumstances, the property, and current lender capacity.