Understanding the home loan application process

Buying a home is one of the biggest financial decisions you’ll ever make, and getting a home loan is a key part of that journey. But if you’re new to the home loan application process, it can feel confusing and overwhelming. Don’t worry – this guide breaks it down step-by-step, so you know what to expect and how to prepare.

Step 1: Check what you can afford

Before you start looking at houses or speaking to a bank, it’s a good idea to check how much you can realistically afford. This depends on your income, monthly expenses, debt and how much of a deposit (if any) you’re able to put down.

You can use free home loan affordability calculators online. These tools help you:

Using an online calculator is quick and easy, and it gives you a clearer idea of your budget before applying. It’s not a guarantee, but it’s a smart first step.

Step 2: Get pre-approved

Once you know your budget, the next step is to get pre-approved for a home loan. Pre-approval means a bond originator like BetterBond checks your credit record, income and expenses and gives you a pre-approval certificate that’s valid for 90 days. This gives you a big advantage when house-hunting, because:

To get pre-approved, you’ll usually need to provide:

BetterBond can then apply to multiple banks on your behalf, to get you the best interest rate on your home loan.

Step 3: Find a property and make an offer

With pre-approval in hand, you can start looking for your dream home. Once you’ve found the right place, you’ll make an offer to purchase. If the seller accepts, you sign a sale agreement and then your formal home loan application can begin.

Step 4: Submit your formal application

Even if you’ve been pre-approved, you still need to submit a full application once you’ve chosen a property. The bank will assess the value of the property, your financial documents again, and the details of the sale agreement. We call this the final approval.

Some banks might also send a property assessor to make sure the house is worth what you're paying for it.

Step 5: Loan approval and bond registration

If the bank is happy with everything, they’ll issue a home loan approval and send you an official loan offer to sign. Once you accept, the process of bond registration begins. This involves attorneys who:

This part can take a few weeks, so patience is key.

Final step: move in!

Once you register your bond and the transfer of ownership is complete, the property officially becomes yours, and you can move in!

Getting a home loan doesn’t have to be scary. By using online tools, getting expert help from a bond originator like BetterBond and understanding each step, you’ll feel more confident and in control. Your home journey starts with knowledge – and this is just the beginning.