How long to obtain a bank loan?

Depends on the bank. All seem to be running very slow at the moment. Will also depend on the valuer. Probably take around 2 weeks if everything goes smoothly.

Recently got my loan, it took us 10 working days, was nerve wrecking though, and would not recommend leaving things so late. In case paperwork not completed properly etc. The valuation took 2 days. Good luck with your application!

Hi Kooz,

THis is really a 'how long is a piece of string' question at the moment – although it should'nt be.
There are so many variables, and a lot will depend on whether you want (or mean) a 'subject to' approval, ( or conditional ) or an unconditional one. Unconditional means you have found the house, the bank has had it valued to their satisfaction (usually from the contract of sale if it is in the same state) and you have been issued with a formal offer, meaning the actual loan documention to sign.
Additionally, bank verification requirmements have also tightened up, also adding to dealys, especially if you have not provided the relevant statments, proof of income etc. That said, if you supply everything asked for there is no reason why you could not get an approval withinn 3 or 4 days, and then be waiting for docs from ANY bank – some will still do 'same day' or within a couple of days easy.
Having only a 5 or 10% deposit will take longer. Not all of the major banks have automatic lenders mortgage insurance – meaning you need approval from the insurer as well – there is another 4 or 5 days – before they even verify all the info you have given them – and then have to do a valuation.
Unfortunately, due to what has happened in the industry, loans forwarded or presented by mortgage brokers are considered to be a higher risk as well – which is reflected in assessments – and if you have made a few applications for 'proper' preapprovals and thus have a few enquiries on your credit file, this can add to dealys as your banker or broker sends your loan app to the lenders credit department to try and get the declined or 'defer/refer' decision actioned.
I had a broker I know recently forward me an application that had been with W-s-p-c for FOUR WEEKS without a response! HAve also heard CBA are quite slow at the moment.
The important lesson out of all this is under no circumstances should you let a real estate agent bully you into only putting 7 0r 10 days on your subject to finance clause – as it can simply be cutting things too fine. Maybe a year ago – but not now – times have changed. A good agent should appreciate this, or work with it on your behalf.

All the best!

Cheers

Hi Karen

Could possibly be true as NAB dont do internal valuations unless the loan is Lodoc so maybe a problem with the loan itself.

Of course there is no excuse for your Mortgage Broker keeping you updated as to the progress on the application.

NAB have the same credit channel as we do as Brokers so the progress wont be any swifter.

Easy answer is to use another Mortgage Broker.

Kooz,

There are many different advantages going with a broker over a bank, if the broker is well trained and knowledgagle.  Most brokers should be able to recommend good products for you.  They will cut down on the time to "shop around" different lenders comparing different products with different conditions and fees.  If your broker is proactive they should be able to keep you up to date with the progress.

If your income doesn't all come from 1 employer paying you wages then a good broker will also know how different lenders will treat the different forms on income or the time frame you must be employed with them for.  If you have defaults on your file then brokers should be able to notify you of lenders who are more or less likely to consider you application.

The main advantages come into play when you start getting into investment properities, or wish to in the future. If you go to the banks they will try to tie all of your properities (PPOR & IP) together in the same mortgage documents.  If one property loan goes bad the bank can choose which property/ies they sell. Good mortgage brokers should be able to set up loans to ensure you get maximum protection and maximum tax benefits.

Anyone can ask a bank directly for a discount on their home loan.  Good mortgage brokers will also get discounts for their clients as they should know what a lender is willing to offer

I agree BUT the 'key' is finding a good mortgage broker .

The advantages will outweigh the disadvantage if you have a good mortgage broker.

Hi

Anyone getting finance these day's should suggest a finance clause of 21 day's if possible and a settlement date of at least 60 day's.

It is getting very difficult with the banks, as mentioned  in above posts, depending on what bank, it may take as quick as 48 hours to 4 weeks (where I know ANZ is at the moment).

Unfortunatley it is not the brokers fault, though he should have warned you previously with the process and timing.

Regards

Rob Bologna
Dollar Wise Financial Services
[email protected]

Hi Jaz

Hate to say that is a common timeframe and Westpac are not alone.

For the Q&A department to be involved the must suspect some information in the application needs clarification or is not correct so might be a little longer.

Unless it is a lodoc application we wouldnt use Westpac for a refinance as you can do lot better in a lot less time without the stress.

Hard to comment when i havent all the personal details.

Kooz, without more details it is hard to say – however, if you had a 20% deposit (I know most dont – but this is an example) a regular income from full time employment, and can service the loan, ANY bank branch that can not give you same day (you may need to make an appoinment of course) conditional approval you should walk out an go next door to the next bank.
As has been mentioned, higher % borrowings, and perhaps other issues that you need to have verified by the lender can easy drag any deal way out itme wise.

Cheers