Need a home loan in a hurry? Here’s what you need to know to fast track your home finance.
In an ideal world, organising a home loan should be a stress-free experience, with plenty of time to select the right loan for your needs, followed by a comfortable wait while the loan is approved.
But life doesn’t always work that way, and there can be a range of situations when you need fast home loan approval.
Barry Saoud, Head of Aussie Products, explains, “It’s actually quite common for borrowers to need a home loan approval quickly, and it’s something Aussie Brokers encounter quite a bit. As a guide, home buyers often use the cooling off period in a private treaty sale to secure home loan finance.”
Cooling off periods vary between states and territories. New South Wales and Queensland buyers for instance, have a five day cooling off period. In Victoria however it’s just three days, and in South Australia, the cooling off period is just two days, giving buyers a very narrow window of opportunity to be sure they can secure a home loan.
It’s not just home buyers however, who may need fast home loan approval.
Barry explains, “A home owner may receive a letter from their lender advising their loan rate is about to rise, or a fixed rate is coming to an end. In both cases, people need to know very quickly, often in just a few days, if they can get a better deal by refinancing.”
At other times, home owners approach their Aussie Broker for urgent help accessing home equity. “They may be planning a holiday, or it can be a more serious situation where medical bills need to be paid,” explains Barry.
Prior preparation helps
The key to organising a fast home loan is to be prepared. “The more paperwork you can provide, the faster your Aussie Broker can get to work talking to different lenders,” says Barry. That means gathering recent pay slips, or at least two years of financial statements if you’re self-employed. If you’re refinancing, bring three to six months of past loan statements to the meeting.
Importantly, signal upfront with your Aussie Broker that you need loan approval in a hurry. “Some lenders are faster than others when it comes to loan approval,” notes Barry. “One of the big advantages of working with an Aussie Broker is they are in the know about which lenders are quick with loan approvals, and which are more likely to have an extended turnaround time. When time is of the essence, these sorts of industry insights are a real plus for borrowers.”
Loan approval in as little as 48 hours
If the paperwork is all in order, your Aussie Broker may be able to arrange fast home loan approval in as little as 48 hours. Though from here, you still face a loan settlement period. The good news is that it may be possible to fast track this also.
“If you’re buying a home, you’re generally looking at a period of around six weeks between exchange (signing of the contract) and settlement but this is often negotiable,” explains Barry.
If you’re refinancing rather than buying, shorter settlement periods are possible. “Refinances can potentially be completed in a week,” observes Barry. “However, the ‘X’ factor is often whether or not the outgoing lender drags the chain.”
Peak periods to avoid
When you’re looking for fast home loan approval, it’s worth knowing the peak periods when lenders are especially busy. The run-up to Christmas is typically hectic, though Barry notes periods of high demand can crop up throughout the year.
“When a lender announces a new low rate, it can be flooded with applications and this can slow down approval times. Under these circumstances, your Aussie Broker may suggest looking at a different lender if you can’t hold out a little longer. That said, the home loan rate is just one aspect of a home loan to consider. Your Aussie Broker can identify the loan that is right for you from every angle – the interest rate as well as the availability of money-saving features”.
Get in early where possible
The bottom line is that a day really can make a difference. Fast home loan approval times of as little as 48 hours are possible with the support of your Aussie Broker. Nonetheless, it pays to get in early where possible.
Barry says, “It’s all about finding the right product and knowing the loan amount that is right for you at an early stage. Speaking with your Aussie Broker as soon as possible gives you a clear idea of your borrowing power, and it may be possible to organise home loan pre-approval, which can go a long way to avoiding a last minute rush”.
Make a date to speak with an Aussie Broker to discover how to get your home loan application over the line sooner.
You may also be interested in Real stories of how Aussie Brokers can make a difference to your life, Tackle the challenges of getting into the property market with the help of an Aussie broker, and Home loan application 101: what to expect, step by step.