Whether you’re buying your first home or your next home, the process of getting a home loan sorted can be a daunting and emotional journey. But it doesn’t have to be! With a little understanding of what’s ahead and with an Aussie expert working with you, the keys to your new home could be in your hands in no time at all.
So where do you start?
Your first step in the home loan process is talking to a home loan expert. Your local Aussie broker is a great place to start. And finish! For over 25 years, Aussie has helped Australians to get the home loan that’s just right for them.
1. Meet with an Aussie home loan expert
Talking with an Aussie broker won’t cost you anything, but it could help you save time and money. You can talk with Aussie over the phone or make an appointment at your local Aussie store.
It’s a great idea to come to your appointment armed with the paperwork that will help your broker get a big picture of your current financial position. This should include:
• recent bank statements, pay slips or group certificates that provide evidence of your income and, for first home buyers especially, your saving history
• details of your current assets and liabilities – such as any current mortgage, funds invested, credit card debts, car repayments and so on
• a summary of your usual household and living expenses
• personal ID such as birth certificate, current passport or citizenship certificate
During your appointment, your broker will ask about your plans and then calculate your borrowing capacity along with the repayments that you can expect.
Whether it’s your first loan or you’re looking to refinance an existing mortgage, your broker can find the loan that will work hardest for you and optimise your savings, now and into the future.
2. Finalising your application
When you’ve chosen your loan and are ready to proceed with your application, your broker can look after all the paperwork for you.
Generally, you shouldn’t have to wait longer than a few days for an initial decision from your lender. Depending on the lender’s own processes, the complexity of your situation or the type of finance you’re applying for, it will typically take between 4–6 weeks from the day you submit your application to reaching settlement (step 8).
3. Conditional approval
Expect to hear about your application anywhere between 3 to 7 days.
If you’ve already found the property you’re hoping to buy, your broker will arrange a valuation of the property. Expect this process to take 5-7 days, depending on a number of factors including the availability of the valuer and how quickly the vendor or agent can provide access to the property.
4. Full approval
Congratulations. If you’re ready to buy you are now able to sign and exchange a Contract of Sale, which is handled by your appointed legal representative who is a certified conveyancer or solicitor.
If you were seeking pre-approval, it’s time to continue your property search. Your broker will advise of the time limit that may apply to your pre-approval.
6. Review your loan documents
When your loan documents arrive, Aussie will send you a formal letter of offer. It’s essential to review all loan documents through your solicitor. Once again, your Aussie broker will guide you through the process and advise next steps.
7. Sign your loan documents
Once you and your solicitor are happy with the loan documents, sign on the dotted line and return the documents to Aussie.
8. Confirmation of settlement
Your conveyancer will have agreed a date for settlement with the vendor’s legal representative when contracts were exchanged. This is typically four weeks after signing the Contract of Sale (step 4).
You’ll receive a letter from your lender confirming all the details of your loan, including the amounts and dates of your repayment. From this point, your lender will manage your day-to-day loan questions.
Your Aussie broker can advise you on finalising all transactions and setting up direct debits to ensure the right accounts are in place and all payments are processed correctly. When all money has been transferred according to your instructions, settlement is complete.
That’s it. You’re home!
At key stages throughout the life of the loan – and at key stages of your life – Aussie will stay in touch to ensure that your loan is still meeting your needs. Whether you have a growing family, are considering your next move or thinking about investing for your future, as your life changes, we want to be sure that your loan arrangements can change with you.
You’ll be at home with Aussie
No one will promise you that the process of applying for a home loan will be completely stress-free. But with Aussie by your side, we’re committed to making it as easy as we can. Find out how by talking to your local Aussie broker today.
Take a look at our real life “Little Aussie stories” which you’ll find on our homepage and here’s some more reading you may find useful: