Applying for a home loan

We charge a settlement fee of $300 and in addition a security assessment fee. The security assessment fee for a standard property in a metropolitan area in a major city starts at $230 for properties valued up to $1million. The security assessment fee is not refundable and is payable when the security assessment is ordered. The remaining $300 settlement fee is deducted from the loan proceeds at settlement.

Once you have completed your application online we can generally get preliminary approval to you within 48 hours.

Borrowing capacity is the maximum amount of money a lender will loan you. It is also reflects your ability to fund ongoing loan repayments. It is calculated using your income, expenses and credit history, as well as the lender's risk appetite. To calculate your borrowing capacity, click here.

For gifted funds, we will require a statutory declaration from the family member providing the gift, including the full name of the person receiving the gift, amount of the gift and confirming the gift is non repayable.

A Target Market Determination is a document which sets out the target market for a financial product, as well as information regarding the distribution of that product. We’re required to have Target Market Determinations for each of our products under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019. Please contact us if you would like a copy of the Target Market Determination for any of our products.

Yes. HECS/HELP debt repayments limit your maximum borrowing capacity, but all is not lost. When you apply for a home loan the lender examines many things including your income, assets, (other) debts and expenses. Each lender has different methods to calculate how much you can borrow safely.

Every borrower, lender, and loan is unique, so loan approval times can vary widely. Generally speaking, for a basic scenario where the clients have prepared their supporting documents, a home loan approval can be sought in as little as 3 to 5 business days. To learn more, click here.

Once you have received your final approval we will then send you your loan contracts to be signed. This will include a discharge document for your current lender. Once we have received all of your signed documents back, we will then forward the discharge form to your current lender requesting suitable day and time to payout and close your home loan with them.

As of 1 January 2011, by law, any business or individual that is involved in credit activities must either hold an Australian Credit Licence, or be appointed as a credit representative under an ACL. "Credit Activity" under this regulation is defined as activity relating to credit contracts, consumer leases, related mortgage and guarantees and credit services.

ACL's were made law to ensure that everyone who engages in credit activities adheres to industry standards: to create an industry that is more fair and transparent, so that you can be confident and informed when considering what credit is best for you.

When you are considering credit, check that the people you are dealing with have an ACL. Anyone operating without an ACL is operating illegally, and should be reported to the Australia Securities & Investments Commission (ASIC).

loans.com.au operate under the ACL 395219.

To find out more information, or to search for an ACL, refer to the ASIC website.

If you're thinking about buying property, applying for a home loan can be seamless from start to settlement. One simple online application can tell you how much you can borrow, give you pre-approval and help you track your application progress all the way to ownership. To learn more, click here.

In order to apply for our construction home loan, you will need to either own your land outright, be refinancing a land loan or have a Contract of Sale for the Land as well as fixed price building contract, which includes all plans and specifications.

Yes this is a compulsory part of the application process. It is important for both us as a lender and also our customers, as the security value needs to be accurate and correct.

Property settlement is the transfer of property ownership from the seller to you, and the payment of money from you to the seller. It is a legal process that is typically facilitated by a lender and conveyancer. To learn more, visit here.

LVR stands for loan-to-value ratio. It's the amount you’re borrowing, represented as a percentage of the property value. Having an LVR of 80% or less may help you secure a lower interest rate. If it’s above, you may need to pay Lender’s Mortgage Insurance or get a guarantor. To learn more, click here.

To take the stress out of applying for a home loan, it’s important to have all of your required documentation organised and prepared in advance. If you’re looking to apply for a loan with loans.com.au and you’re unsure what documents you need, our home loan application checklist can help get you started.

Yes. You can split property costs between two people by submitting a joint loan application with another person, known as a co-borrower. They will own the loan and repayment responsibility with you. Having a co-borrower may increase your chances of securing a competitive home loan.

Yes. Stamp duty is one of the various upfront costs of buying a property. This cost, along with other upfront costs, may be added to the home loan application amount. Stamp duty fees vary by state. To learn more, visit here.

Your borrowing power is affected by various factors like your income, tax, expenses and credit score. To learn more, click here.

To track the status of your existing home loan application, login to onTrack.

Yes. Lenders typically provide up to 80% of your home value, minus any amount owed to a lender. Typically, equity is accessed through a mortgage refinance which can release any equity in your home to be used as a deposit in the purchase of another home. To learn more, visit here.

We combine data from external property data specialists, like independent property valuers, with our own to develop an estimate of a property's potential market price. This takes into consideration the property profile and condition, local area sales and broad property market characteristics. To learn more, visit here.

When applying for a home loan, simply having cash isn't enough. Often, you'll need 'genuine savings' to show a lender. These are savings that you have accumulated over a period of time. A house deposit usually needs to be between 10% and 20% of the value of the property. To learn more, click here.

Your credit score is a number that indicates your creditworthiness. It is reported in your credit report. In Australia, it is calculated by a credit reporting body or credit provider using personal information from your credit history, collected from various credit providers such as online lenders like loans.com.au.

Credit history is collected by specific organisations. In Australia, credit reporting bodies include Equifax, Experian, Veda and Illion. When you apply for credit with a credit provider, Australian credit reporting laws say that the lender must tell you which credit reporting body they share your personal information with.

There’s no magic credit score number to get a home loan. The higher your credit score number the more likely your home loan application is approved. In Australia, if your credit report shows credit scores out of 1,000 then a credit score between 500 and 700 is considered average.

Credit Score | Possible Outcome

Below 510 | You are considered a high risk, which could mean a low chance of being approved.

511 to 610 | Lenders may need more information as your credit history probably has some flaws, but you have a chance.

611 to 710 | You are fairly likely secure a home loan. You may even be able access lower interest rates.

711 to 810 | Your application should be treated favourably as you’ve been diligent with past repayments and payments.

Above 811 | You are a solid applicant with an excellent chance of securing a competitive home loan.

There’s no universal minimum. Your home loan application is not assessed against a common credit score by all lenders. Rather, each lender checks your creditworthiness against their own lending policies and minimum requirements.

Paying expenses, bills and invoices on time, along with regularly paying down credit card balances, builds your credit history. Credit providers will consider you more eligible for credit when your credit history shows that you have not defaulted on repayments and consistently made them on time.

No credit history means none of your bills or expenses have been reported to a credit reporting body. It doesn't mean you’re irresponsible. Typically, you will not have a credit history if you have never had a credit card, a mobile phone plan or if you prefer to pay for everything with cash.

Yes. Even if your credit file is empty. In fact, borrowers with no credit history may even find it easier to get a home loan over other credit products like personal loans or credit cards. That’s because a home loan is secured by the value of the property, as well as your ability to service it.