How to help speed up your home loan approval

Interest rate announcement – October 2017

Today the Reserve Bank of Australia met to review the official cash rate. After last cutting rates in August 2016, the RBA have again decided to leave the cash rate on hold at 1.50% this month. Nonetheless, we have seen some lenders starting to increase their variable and fixed interest rates out of cycle and we expect others to follow suit.

There is no regular set timeframe for getting a loan approved. Every application is unique, so the time between your first contact with your broker or bank and approval can differ greatly from loan to loan. However, there are things you can do to help speed up the loan approval process.

In rare cases, it may be possible to organise same day loan approvals or at least pre-approvals. This will largely depend on the lender’s criteria, the complexity of the loan and the lender’s internal turnaround time. In most cases, same-day approval only occurs where the applicant’s are straight forward in terms of their employment status, asset/liability position, and where a formal valuation is not required.

However, if the applicant is not prepared, approval can take up to a month to secure. The most common reasons for a lengthy delay are: the lender’s internal turnaround time (particularly when the lender is experiencing high application volumes) and incomplete/inaccurate application documentation. Although it is not always possible to control a lender’s turnaround time, being well prepared can help to substantially improve the application process.

Harvest can help you through all of the necessary steps to give your loan the best chance of being approved quickly, however, there are some simple things you can do before beginning the application process to help speed things along.

Disclose all information accurately

One of the most common delays to loan application approval is inaccurate or incomplete disclosure of information on your personal and financial circumstances. In these cases, the lender will often need to follow up with multiple requests for further information. To prevent delays, make sure you can provide all of the required information and documentation to Harvest or the lender upfront. This includes current copies of your identification documents, payslips, bank statements, credit card/other loan statements, details of any other assets you own.

Skip the valuation queue

Depending on the property, lender and loan details, you may not require a valuation. In some cases, where a valuation is required, you can save time by having the valuation completed prior to applying for the loan. Harvest can arrange this for you to help avoid any unnecessary delays which applying for your loan. Contact us for more information.