Home loan application process

Every customer’s needs are different and the right home loan for you will depend on a variety of factors, including your financial situation and the type of property you’re purchasing. To start looking for the right home loan, we recommend exploring our home loan comparison page.

When finding the right loan for you, we will give you a loan amount based on your financial situation, requirements, and objectives. However, if you want an estimate of your borrowing power, you can use our online borrowing power calculator. This tool considers your income, expenses, and other financial information to give you an idea of how much you may be able to borrow. Keep in mind that this is only an estimate, and your actual borrowing power may be different based on a more detailed assessment of your financial situation.

Our lending specialists are also available to discuss your specific needs and help you understand your borrowing power in more detail, including how to calculate your home loan repayments.

There may be various documents that you will need to provide as part of the home loan application process, including:

1. Identification: To apply for a home loan, you’ll need to provide identification documents such as your passport, driver's licence or birth certificate. These documents help to verify your identity and ensure that you’re eligible to apply for a home loan. If you’re not an Australian citizen, you may also need to provide additional documentation for a home loan application, such as your visa or residency status.
2. Income: You’ll need to provide proof of your income, which may include pay slips, tax returns or bank statements. These documents help to demonstrate to the lender that you have a regular and sufficient income to repay the loan. If you’re self-employed, you may need to provide additional documents such as business tax returns or financial statements. Additionally, if you receive any other sources of income, such as rental income or government benefits, you may also need to provide evidence of these.
3. Expenses: You’ll also need to provide details of your expenses, including any existing debts such as credit cards, car loans or personal loans. This information helps the lender to assess your capacity to repay the loan and determine whether you can afford the repayments. You may also need to provide statements or documentation for your expenses, including repayment schedules for any existing debts.
4. Other information: Depending on your individual circumstances, you may be required to provide additional information such as proof of savings, details of any assets or liabilities, or information about your employment history. This information helps to build a complete picture of your financial situation and ensures that you’re a suitable candidate for a home loan. For example, if you’re using an existing property that you own as security for the loan, you’ll need to provide information about that property, such as its value and any outstanding loans. If you’re building a new home, meanwhile, you may need to provide plans and specifications, as well as quotes or invoices from builders and contractors.

Conditional approval and unconditional approval are terms used to describe the stages of the home loan application process.

Conditional approval means that a lender has assessed a borrower's loan application and is willing to offer them a loan, subject to certain conditions being met. These conditions may include providing additional documentation, such as proof of income or employment, or providing further information about the property being purchased. Once the borrower has met these conditions, the lender will then provide an unconditional approval.

Unconditional approval, also known as formal or full approval, means that the lender has completed a full assessment of the borrower's loan application and is willing to offer them a loan. At this stage, the lender has fully verified the borrower's income, employment, credit history, and other relevant information, and has determined that the borrower meets all of their lending criteria.

You can learn more about conditional and unconditional approvals here.

A guarantor on a home loan is a person who agrees to take responsibility for a borrower's home loan if the borrower is unable to make their loan repayments. Essentially, a guarantor is a co-signer for the loan, who provides a guarantee to the lender that they’ll cover the loan repayments if the borrower is unable to.

In most cases, a guarantor is a family member or close friend of the borrower who has a good credit history and is willing to use their own home, as security for the loan. The guarantor is essentially pledging their own assets as collateral in the event that the borrower defaults on the loan.

Having a guarantor on a home loan may be beneficial for borrowers who have a low income or limited savings, as it could make it easier for them to qualify for a home loan. It may also help borrowers avoid paying lenders mortgage insurance (LMI), which is usually required for borrowers with a deposit of less than 20% of the property's value.

Find out more about the role of guarantors on a home loan application here.