The Home Loan Process Step by Step

Step 1: Get pre-approved

Pre-approval gives you a clear picture of your spending limit and lets you move quickly when you find the right property. It may also put you in a stronger position than buyers without it. Even with pre-approval, a subject to finance clause is an important protection in any contract. Learn more about home loan pre-approval.

Step 2: Find your property

Research prices in the area, potential capital growth and existing and planned infrastructure such as roads, public transport, schools and shops. If you're unfamiliar with values in the area, consider a valuation by a registered valuer before you decide.

Step 3: Make an offer and sign the contract

Whether you buy at auction or by private treaty, you'll sign a contract of sale confirming the price and any conditions, such as subject to finance and building and pest inspections. Even with pre-approval, the lender still needs to value the property before giving formal approval.

You'll also need a conveyancer or solicitor. They check rates and approvals, order searches and, on settlement day, make sure the right money changes hands so you can take ownership.

Step 4: Pay the deposit

A deposit is due once both parties sign the contract. Your loan isn't available yet, so the deposit comes from savings or elsewhere. A deposit bond may be an option. If you didn't buy at auction, you may have a cooling-off period, but rules differ between states.

Step 5: Formal approval and going unconditional

We manage the lender's valuation and any approval conditions. Be very careful about signing an unconditional contract or bidding at auction unless you're confident about your finance, and consider legal advice before you sign.

Step 6: Settlement

On settlement day your lender pays the seller, the title transfers to you and you get the keys. Your first repayment is usually due about a month later. We'll check in after settlement and review your loan as your needs change.

Why use a broker for your home loan?

Read more: how long approval takes and 7-day finance terms.

Frequently asked questions