While all banks are different, there is a basic process which most loans will take.  It is as follows:

  1. Loan application submitted

This must include all supporting documentation to ensure the client demonstrates the ability to repay the loan.  This list of documentation includes, but is not limited to:

    • Payslips
    • Tax returns
    • Bank statements
    • Proof of rental income (or potential rental income)
    • Family support payments proof
    • ID for all borrowers
    • Business financials for self employed
    • Contracts for purchase
    • Title deeds
    • Credit card statements
  1. Loan is conditionally approved

A conditional approval means that the loan has been approved in principle.  Usually this means that the client has been found to meet serviceability but there are things which need to be confirmed.  These things may include:

    • Employment status
    • Valuation of any property being used as security
    • Conformation of outstanding debts which may need to be repaid
    • Satisfactory Equifax Credit check
  1. The loan is unconditionally approved

When all of the conditions have been met, the loan is approved and the borrower may exchange their purchase contracts or go unconditional on that contract

  1. Loan contracts issued – stating terms and conditions of the loan
  2. Loan contracts signed by all borrowers, witnessed and returned
  3. Mortgage documents issued (these are often issued along with the loan contracts)
  4. Mortgage documents signed in the presence of a legal practitioner
  5. The loan is certified
  6. The loan settles.

Lenders may vary from the above list, but in general, it is a consistent process across all lenders.