Most buyers are surprised by how long home loan approval actually takes — and most are surprised by how fast it can move when you're prepared. Here's the real timeline, step by step.
24–72h
Pre-approval (if prepared)
3–5
Business days typical
3–6
Months pre-approval valid
42
Days to settlement (typical)
The Two Types of Approval: Pre-Approval vs Formal Approval
Before understanding timelines, it helps to understand that there are two distinct approvals in the home loan process:
- Pre-approval (conditional approval): The lender says "we'd lend you up to $X" — subject to valuation and final checks. Happens before you find a property.
- Formal (unconditional) approval: The lender has assessed everything — including the specific property — and issues a firm, unconditional offer. Happens after you've signed contracts.
Most buyers ask "how long does approval take?" when they mean pre-approval. The timelines for both are covered below.
How Long Does Pre-Approval Take?
With a broker who submits a complete application, pre-approval typically takes:
- 24–48 hours: Fast-turnaround lenders (some online and non-major-bank lenders)
- 3–5 business days: Most major banks (CBA, ANZ, Westpac, NAB)
- Up to 10 business days: If your application is complex (self-employed, multiple properties, credit issues)
The most common cause of delays is missing or incomplete documents. If you submit a complete application with all required documents in one go, you'll typically get the fastest turnaround. A broker knows exactly what each lender needs — and submits to the lender most likely to approve your profile first.
What slows pre-approval down?
- • Incomplete documents — lender has to come back and ask for more
- • High lender volume — some lenders have slower queues than others
- • Complex income — multiple income sources require more assessment
- • Credit issues — adverse credit events trigger manual review
- • FHBG / scheme applications — additional government verification needed
How Long Does Formal Approval Take?
After you exchange contracts on a property, formal approval involves the lender ordering a valuation of the property and conducting final assessment. The valuation is the main variable:
- Desktop valuation: 24–48 hours — lender uses automated tools to value the property
- Kerbside valuation: 2–4 business days — valuer inspects exterior only
- Full internal valuation: 3–7 business days — valuer inspects inside and outside
Once the valuation returns satisfactorily, the lender issues formal approval and sends loan documents within 1–3 business days. You then have time to sign and return the documents before settlement.
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The Full Timeline from Start to Settlement
| Stage | Typical Time |
|---|---|
| Gather documents + broker meeting | 1–3 days |
| Pre-approval issued | 1–5 business days |
| Property search | Weeks to months |
| Contract signed & exchange | 1–2 days |
| Property valuation | 2–7 business days |
| Formal approval issued | 1–3 days after valuation |
| Loan documents signed | 1–5 days |
| Settlement | 42 days from exchange (typical) |
Can Approval Be Faster at Auction?
At auction, there is no cooling-off period — if you're the winning bidder, you've exchanged contracts immediately. This means you need unconditional finance arranged before auction day. Most buyers get formal pre-approval first, then arrange a valuation of the specific property before bidding.
Some lenders will do a pre-valuation before auction, which removes the valuation risk. This takes 3–7 business days, so plan your auction property research timeline accordingly. Your broker handles this coordination.
What Can Delay Approval?
The most common unexpected delays in the approval process:
- Lender valuation comes in low: If the lender's valuation is below your purchase price, you may need to cover the gap with extra cash or renegotiate
- Document requests: Lenders sometimes request additional documents mid-assessment — respond within 24 hours to keep things moving
- Rate changes between pre-approval and formal approval: Pre-approval rates are not guaranteed — confirm rate lock terms with your lender
- Changes in your financial situation: Don't change jobs, take on new debt, or make large purchases between pre-approval and settlement
- Government scheme verification: FHBG places are allocated — your broker checks availability before submitting
Tips to Speed Up Your Approval
- Prepare all documents in advance — don't wait for the lender to ask
- Use a broker who knows which lenders have fastest turnaround at the moment
- Respond to any lender requests same day
- Don't apply with multiple lenders simultaneously — multiple credit enquiries in a short period can affect your credit score
- Keep finances stable in the months before applying — no large unexplained deposits or withdrawals
At Mortgagefy, we typically have pre-approvals in hand within 24–72 hours for well-prepared clients across Sydney. We work with buyers in Liverpool, Parramatta, Campbelltown, and across Western Sydney. The initial consultation and pre-approval submission are completely free.
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