How long does it take to get your home loan approved?

By Maria Gil and Evlin DuBose
Fact Checked
Advertiser disclosure
Person checking their home loan application approval illustration

Waiting for your home loan application to be approved can generate a lot of anxiety, particularly in a competitive market when your dream property can slip through your fingers if your bank is taking too long.

Some lenders put their average unconditional approval time at four to six weeks, while others claim they can give a customer an application outcome the next day. While there’s no clear-cut answer to how long the home loan process will take, there are things you can do to help speed it up.

How long does it take to get home loan pre-approval?

Before lenders can grant you unconditional approval, you’ll need to go through the process of obtaining pre-approval. This is a statement indicating how much a bank is willing to lend you based on your current financial situation.

This stage tends to last between 3 and 5 days. That said, it might take longer depending on the lender, your borrower profile, and the complexity of your application. For example, your loan application might be subjected to much more scrutiny if you:

  • Have a high loan-to-value ratio
  • Have non-typical employment
  • Are a non-resident
  • Are borrowing with a guarantor
  • Are borrowing upwards of $2 million

However, many online mortgage lenders these days use technology to crunch the numbers. This way, some lenders such as Athena, Unloan, and Up claim to give you conditional pre-approval for your home loan in minutes. 

How long does it take to get unconditional approval?

Once you’ve made an offer on a property and the vendor has accepted it, you can now apply for unconditional approval. At this stage, your lender will review all your documents and conduct all the necessary checks (such as a property valuation and credit check) to ensure you can service your home loan.

If they are confident that you can finance the mortgage, you’ll be sent a statement informing you that your home loan application has been approved. It might take as little as one day or up to a week before you receive this.

How can I speed up the home loan approval process?

If a timely home loan approval is important to you, there are a few things you can do to improve your chances. These include:

  • Apply with the right lender
  • Make sure all your paperwork is in order
  • Sign and return forms as quickly as possible
  • Make sure you’re a good borrower and don't have any red flags. 

Mistakes on your application or red flags lenders don't like can all slow down your approval process. As a rule, it's easier to lessen drag than to push harder, so comb through your home loan application for problems, prepare your finances, and consult a financial adviser to make sure you're ready for approval. 

Apply with the right lender

At the end of the day, no bank will grant you a home loan without evidence you can pay it off. But even if you can comfortably service a mortgage, some banks will make you jump through more hoops to prove it.

For example, a newer lender might request more documents and in general be far more cautious than one of the major banks. That’s because a customer defaulting on their home loan will have a greater impact on a smaller player than a larger, more established one.

Make sure all your paperwork is in order

Sometimes, the application process is drawn out because lenders don’t have all the information they need. To save yourself time, make sure you provide all the necessary documents upfront.

Some documents your lender will require include:

  • Identification
  • Proof of employment
  • Pay slips
  • List of expenses
  • Details about income from other sources (e.g. interest and dividends)
  • Details about any debts
  • Tax returns
  • Insurance
  • Offer on the property.

If part of your deposit was gifted to you by your parents, your lender might also ask for a ‘gift letter.’ This is a statement signed by your parents confirming that the funds were given to you unconditionally and there is no obligation to repay them. 

In general, try to provide as much detail as possible to avoid any back and forth requests for clarifications. For example, if you don’t drive your car much because you live close to work, it might be worth saying so in a note to the bank so they don’t inquire why your petrol costs are so low.

Sign and return forms as quickly as possible

If your lender gets back to you with requests for more supporting documents for your home loan application, try to submit them as soon as possible. The longer it takes for documents to reach the loan officer’s desk, the longer you’ll have to wait to get a verdict.

Make sure you’re a good borrower

When you apply for a loan, banks will pore over your finances for evidence that you can be a good borrower. To boost your chances of loan approval, make sure you tick the following boxes:

Frequently asked questions

Should I apply for pre-approval with multiple lenders?

It’s generally not a good idea to apply for pre-approval with too many lenders, as it gives each successive lender the impression that you've been rejected by the others. To avoid coming across as desperate for credit, research your options beforehand and try to submit applications with just two or three different lenders.

Do I have to go with the first lender who grants me pre-approval?

No. Pre-approval typically lasts for around three months before expiring. You can choose to extend it — which can be useful if you haven’t found a property yet — but there's also no penalty if you let it run out and go with another lender.

What happens if my application is rejected?

If your home loan application is denied, it means your bank determined that you cannot comfortably service a loan. While this is a major setback, it doesn’t mean you won’t be able to apply again in the future once you’re on stronger financial footing.

If buying property is on your horizon, compare home loans below.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Compare home loans