What is the home loan process from beginning to end?

Are you a little confused about refinancing your existing home loan or purchasing a new owner occupied home? Maybe it’s an investment property?

Please don’t stress because the mortgage process is basically the same.

Before embarking on making a decision, it’s most important to know what your assets, liabilities, income and current expenses are. 

Therefore, do some personal research on the types of home loans that are available and what is required to apply for a home loan.

Start your search 

Find a mortgage broker that really understands your needs. A face to face meeting should take place.

  • At the meeting your broker should at all times conduct themselves in a courteous manner. Talk about the initial telephone conversation. Make sure that no extra information is required or missing.
  • They will check all documents to support your financial situation. They check payslips, rental income, family assistance etc.
  • The loan amount and what the funds are used for will need to be discussed.
  • When your mortgage broker has a clear understanding of your financial position, you can now discuss the various home loans in the market.

Most importantly, they should provide you with home loan comparisons. They will determine your mortgage repayments, upfront fees and ongoing fees.

Take your time

  • Decide which home loan suits you. Fill out the application form and signed by all applicants.
  • Your mortgage broker will inform you of what will happen next and the approximate time for each step in the process.
  • Your mortgage broker will check the application and ask for missing information.
  • Send it to the lender to be assessed.

The lender’s assessor will log the application. They will allocate it a file number and confirm receipt of the application with your broker. 

What’s next

  • The assessor now checks the home loan application.
  • If the application is incomplete your mortgage broker will be contact you for the missing information.
  • The application will not usually progress further it has been supplied.
  • Most important, a review will be undertaken and relevant checks made and all information will be logged into your file.

The assessor will now pass your file onto their team leader with a recommendation to either APPROVE or DECLINE your application.

The lender’s decision regarding your home loan application will be forwarded to your mortgage broker.


Pre-approval of your home loan application will be subject to certain conditions for example, finding a property or a property valuation.

NOTE: Pre-approval usually lasts for 3 months and should cost you nothing.


The lender will order a valuation for the property. Each lender has a list of approved valuers that they select from.

This will ensure that you are paying current market value, and that they are lending within their guidelines.

Home loan approval, or not

  • The home loan lender will give an unconditional or full-approval when all conditions of the home loan have been met.
  • Associated costs will therefore have to be determined. ie: stamp duty, lenders & solicitors fees etc.

Your letter of offer

  • This is a document that will outline the terms & conditions and associated costs of the home loan.
  • Get your solicitor/conveyancer to review the letter of offer, sign it and return it to the lender.
  • The lenders solicitors will now prepare for settlement.
  • The letter of offer becomes the credit contract when signed.

Approved mortgage documents

Your lender will send a Letter of Offer along with your mortgage documents.

These outline the agreement between the lender, the borrower and The Office of State Revenue in your state.

Next, The Certificate of Title will record the mortgage details and names of the borrower/owner and lender.

Your lender and solicitor/conveyancer will take care of this process.


For settlement to take place, all associated costs need to be paid for.

The lender and your legal rep will determine the date and manage the transaction.

Congratulations to you

All your hard work and stress has paid off. You are now a home owner – or if you have refinanced, sit back, relax and celebrate.

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