How long does the bank take to approve a home loan?

Once we have submitted the loan application, the selected lender will need to assess the application. All lenders have different timelines for home loans, but most fall within the below time schedule.

Most lenders at the moment are processing applications relatively quick. Most lenders are taking less than a week for full assessment. Many of the lenders recently (as of 2Q24) are taking 1-2 business days subject to valuations being complete.

Initial lender review: +1 day
The lender checks to make sure their credit team have everything required to assess the application. For more info on our process, read here for how long it takes overall.
Valuation conducted on the property: +2 days
Access to the property is required and is usually co-ordinated with the real estate agent involved. It is not unusual for this step to be delayed by the difficulties with co-ordinating the real estate agent and the tenant/seller of the property.
LMI assessment (if applicable): +1 days
The Lender’s Mortgage Insurance provider will review the application as they have different requirements to the lender.
Final Assessment: +1 days
Lender’s final credit review of the application. The lender will assess and cross-check the application. Assuming a successful application, an unconditional approval letter is sent.
Total time: 2-4 business days

How long does the bank take to approve a home loan?

Go to the next section: How long till settlement?