Waiting for your home loan approval can be a nerve-racking process. That's why knowing your lender's average wait times is an important step to ensure you're fully prepared.
In this blog post, Joust breaks down the average wait times for home loan approvals across different Australian banks.
Home Loan Approval Process
Generally speaking, most major lenders work alongside a standard home loan process which includes the following stages. As a quick refresher, here are the general home loan approval processes:
- Pre-approval and/or conditional approval: You can apply for a loan even before beginning your property search. A pre-approval does not guarantee you a home loan. Instead, it confirms that your loan application matches your lender’s criteria subject to certain conditions. Conditional approval comes after you receive pre-approval. It is one level up, coming after your documents have been studied.
- Loan application: This is the halfway mark, and now you are ready to launch into the formal home loan application stage. Following a systematic, informed approach can get your home loan approved faster. Read on to know the three main steps in the application process.
- Post-application/Loan approval stage: This process involves getting your loan offer document from your lender, accepting the loan off and signing the contract before finally settling. Generally, you may be waiting for more than a month to hear back from your lender.
How Long Does it Take a Home Loan to Be Approved?
The average time you can expect to wait for your home loan approval is around 4-6 weeks, from when you submit your application until the settlement. However, this depends on the individual banks or lenders.
Here is the latest data (2022) for home loan approval times across different Australian banks.
Commonwealth Bank Home Loan Approval Time
According to the bank’s website, the estimated time from application to settlement is around 4-6 weeks.
Westpac Home Loan Approval Time
According to industry sources, in 2021, Westpac’s estimated time from approval in principle to loan settlement was about 4-12 weeks.
Bankwest Home Loan Approval Time
As per an independent news report in 2019, Bankwest’s typical turnaround was about 13 days for a new home loan settlement, but the launch of its digital signing service aimed at reducing this time to under four working days for new home loans.
NAB Home Loan Approval Time
According to industry sources, in 2020, the estimated time by NAB, from conditional approval to loan settlement, was about 4-6weeks.
Macquarie Bank Home Loan Approval Time
According to the bank’s website, the loan approval time depends on how quickly the bank can verify the borrower’s identity, assess the application, and transfer security.
ING Home Loan Approval Time
According to the bank’s website, though the time between exchanging contracts and settlement varies, it usually is around 4-8 weeks.
ANZ Home Loan Approval Time
As per industry sources, in 2021, ANZ takes around 15 - 18 business days to approve a home loan from the day of the application to approval. This is subject to all documentation and other criteria being adequately met.
Bank of Melbourne Home Loan Approval Time
According to industry reports, the Bank of Melbourne gives loan applicants pre-approval within 1-2 days of submitting the required documentation.
Me Bank Home Loan Approval Time
As per information available on the Me Bank website, settlement takes around 6-8 weeks after exchanging contracts. However, the exact length of time will be specified in your contract.
Bankwest Home Loan Approval Time
Based on independent information, full approval for a home loan usually involves a series of processes, including property valuation, which Bankwest estimates can range between 1-2 weeks.
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