MyRate Education Centre

Loan Process

Purchase Loan Process
Construction Loan Process
Refinance Loan Process

Purchase Loan Process

1. Research

Make sure you shop around for rates – compare different lenders and loan products to make sure you select the right product for you.

2. Pre-approval

Get pre approval for the amount of money you would like to borrow – this generally lasts for three months. Having your loan pre-approved means that if you find a property you like you can move quickly.

3. Documentation

Pay slips
Group certificate
100 points of I.D.
If self employed: tax returns for the last 2 years, financials for the same period
Savings: enough to cover the deposit, stamp duty and other government fees

4. Find your property

Inspect properties to find the right one for you
Make an offer
Hire a solicitor/conveyancer to check the contract, organise the pest inspections, strata checks etc.

5. Always keep your lender informed

Let your lender know what’s happening at all stages – the more information and documents you can provide them with, the faster they will be able to process your loan.
Inform your lender of your solicitor's/conveyancer's, vendor’s, and real estate agent's contact details.
If more than one month has passed since your pre approval, you will need to supply up to date pay slips.
Provide your lender with a copy of the contract of sale.
First Home Owner Grant: If you are buying your first home, your lender will provide you with the forms to complete, or you can apply through your solicitor/conveyancer.

6. Valuation

Your lender will organise this once you have provided them with a copy of the contract of sale. If the property is currently tenanted, it may be difficult for the valuer to arrange access, so keep in mind that getting the valuation may take a little longer.

7. Formal approval

If all your documents have been received and processed and the valuation comes back positive then formal approval on your loan will be granted.

8. Loan documents

Your lender will instruct their solicitor to send the loan documents to you. You need to sign and return these. Your lender will then liaise with your solicitor/conveyancer until settlement.

9. Settlement

Congratulations! Your account has been set up and you are ready to start making repayments.

Construction Loan Process

Things are a little different for a construction loan. These are the steps to take after getting your finance and documents ready.

Go shopping and choose a builder

Once you have your finance secured, you can start looking for the land to purchase to build on, and start contacting builders. Most pre-approvals will last for 3 months, so you can take some time to ensure you find your perfect location.

Sites you may find useful:

Keep your lender up to date

Let your lender know that you have found the land, inform them of the agents name, your conveyancer's details, and any other parties involved.

You will also have to supply your lender with a signed copy of the contract of sale, a copy of the contract from your builder, and if more than a month has past since your pre-approval, you will also have to supply your most recent payslip.

Property valuation

Your lender will arrange for an independent valuer from their panel of approved valuation companies to visit your property.

Loan documents and progress payments

Your lender will then send you your loan documents to be signed and returned. They will then liaise with you and your solicitor during the construction period, and will release funds on receipt of each invoice from your builder (these are called draw down stages).

Tips:

Be organised. Getting your documents for pre approval organised as soon as possible will help speed up the whole loan approval process.

How fast can I settle? Timing from the offer on the property through to settlement is at least 3 weeks as long as all your documents are in order and you have finance pre approved.

Refinance Loan Process