Lenders with fast home loan approval

Found your dream home and looking for quick home loan approval to secure it? Finding a lender with a fast home loan turnaround time could be the difference between you buying your ideal property and missing out altogether.

If you find yourself in this situation, it pays to know where to turn.

What is home loan approval?

Gaining approval for a home loan means your lender has considered your borrowing credentials, the property you wish to buy, and given the go-ahead for you to borrow a set amount of money.

It shouldn’t be confused with home loan pre-approval, which is when a lender agrees, in principle, that you can borrow a certain amount. Pre-approval may be granted before a homebuyer finds a specific property they want to purchase.

Home loan approval is the next step up from pre-approval, when the lender has considered your loan application, documentation, the property you are purchasing, and has guaranteed it will fund your home loan.

Pre-approval can make getting final approval faster, but is no guarantee that a loan will be granted.

How long does home loan approval take?

How long it takes to get unconditionally approved for a mortgage depends on a number of variables, including the lender, the borrower’s circumstances, the loan amount, and the property being purchased. Every mortgage application is different. Generally, if a borrower has their supporting documentation in order, a home loan may be approved in as little as a few days. But more complex applications can take a longer to get approved.

For some applications to be approved, lenders require an official property valuation to be performed to determine an accurate market value of the property. This adds another step in the approval process.

In recent years, many lenders have adopted ‘desktop’ or virtual valuations, wherein the value of a property is assessed using data rather than a physical inspection. This can speed up the process markedly.

Additionally, if a borrower requires Lenders Mortgage Insurance (LMI), this can further delay approval. It means the lender’s insurance company will have to assess the risk of the loan before final approval can be granted.

The table below provides a general guide only:

Which lenders have the fastest home loan approval times?

In recent times, the big banks have stepped up their home loan approval times to compete with those of digital-only and non-bank lenders. Let’s check the reported performance of some of Australia’s largest home lenders:

CommBank home loan approval time

Australia’s largest home lender reports its home loan applications take between four and seven business days to be assessed. It says the process can been expedited by applicants ensuring they provide all the necessary information upfront.

NAB home loan approval time

In 2023, NAB reported its digital application platform Simple Home Loan had seen some loans approved in as little as 15 minutes, with 35% of eligible customers having their home loans approved in under one hour and 50% receiving a decision within 24 hours.

ANZ home loan approval time

ANZ publishes a table of its home loan approval times according to a range of borrower circumstances. It reports its ‘Simpler Switch’ like-for-like refinances can be approved in one business day while simple, non-LMI home loans can be approved in two business days. More complex loans may take four days to be assessed while loans for single entity, self-employed applicants can take nine days. An additional two days is added where more documentation is required (three days for self-employed applicants).

Macquarie Bank home loan approval times

In November 2023, Macquarie Bank reported it could approve a home loan in around four hours provided all required documentation was supplied. However, its website says there are several factors that can impact overall time taken, including the provision of all supporting documentation and how long a property valuation takes.

Other lenders

ING says purchase/refinance home loan applications are assessed in three business days while non-assessed pre-approval will take six days if all necessary documentation is supplied. It does not include wait times for valuations.

AMP Bank’s website reports it can validate digital home loan applications in real time and eligible applicants can get approval “within hours*”. The '*' clarifies AMP aims to give “conditional approval”, also known as pre-approval, within 24 to 48 hours of receiving an application. This will likely not involve any property valuation.

The aptly named Tiimely Home (backed by Bendigo & Adelaide Bank) boasts that it once took just 58 minutes to grant full home loan approval, from the time for application was submitted. But it comes with the addendum: “however, approval times depend on individual circumstances”. Tiimely is one lender that uses virtual valuations and will even grant full home loan approval ahead of an auction, allowing buyers to bid with confidence.

Ubank, NAB’s digital only lender, reports it typically takes five business days' turnaround time for a home loan approval unless additional information is required.

Non-bank lender loans.com.au says for a basic scenario where clients have prepared supporting documents, a home loan approval can take between three to five days.

Athena Home Loans’ website says it takes about two weeks from when an application is submitted to unconditional approval.

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