Key Factors That Can Speed Up or Slow Down Your Home Loan Approval!

Time is money, so they say! And a pretty crucial factor that impacts your experience when getting a loan.

Trust us, nobody enjoys a long-winded process or waiting around biting your nails for a decision. At MyMF we do everything in our power to minimise long turnaround times to ensure you get an answer as soon as possible - But, the banks still hold the decision making power, and they run on their own schedule of assessment times.

Assessment times can vary a lot, and there are several factors influencing how long it takes for you to receive your decision. Here are a few things to keep in mind when applying for your next finance application;

Peak Periods, Bank Capacity & Workload

The volume of applications a bank is processing at any given times plays a major role in assessment times. During peak periods (like the spring property market, or end of financial year) banks often receive a surge in apps - Leading to extended processing times!

Complexity of your Application

This is verrry common with all banks. A straightforward application, with a single income source and a large deposit is probably going to move pretty quickly through the assessment process. However, as you can imagine an application with multiple income streams, an applicant who is self-employed or someone with significant debt might take longer to process as they required more detailed scrutiny.

Internal Processes

You might be surprised to hear that what NAB cares about can differ greatly to what CBA or Macquarie cares about. In fact, each lender has its own set of internal procedures and 'appetites' which can lead to variations in assessment times - And these procedures and appetites are on an ever-evolving basis, they change rapidly! Some lenders might want to prioritise existing customers or lower-risk loans, while others are hungry for commercial applicants or have a more blanket/uniform approach.

Changes to Rates/Policies

As you can imagine, if a bank announces changes to their interest rates or lending criteria it often leads to a flood of applications. People may want to lock in current terms before they change, or apply for the new criteria once its in effect. This sudden influx can significantly slow down assessment times.

While some delays are unavoidable, there's still steps we can make together to keep you from twiddling your thumbs.

• Provide Complete Documentation: Ensure all your paperwork is accurate and up to date to prevent back and forth.
• Use a Mortgage Broker: This one's a must! Working with a broker means we can direct you to a lender with a quick processing time, or the appetite for your loan!
• Stay Informed: Keep in touch with your bank or use a broker like us who keeps you in the loop on any updates or changes that may affect your application.

If you're well-prepared and understand what’s at play, you’ll have an easier time managing the process. Whether you’re a first-time buyer or a seasoned investor, staying informed and proactive can help you get your loan approved with fewer delays.