How Long Does It Take To Get Unconditional Approval in Australia

How Long Does It Take To Get Unconditional Approval

If you are looking for a home loan opportunity to give you a push and purchase your new home, you might wonder how long does it take to get unconditional approval in Australia. 

Our guide will solve all your dilemmas and teach you how to get unconditional approval and what comes next.

What Is Unconditional Approval?

The unconditional home loan approval means that you, as a borrower, have full approval for a home loan according to the terms and conditions of the lender. Typically, there won’t be any other conditions you will need to meet to get your home loan. That’s why it is also known as formal or complete home loan approval.

Getting the letter for an unconditionally approved home loan indicates that the lender has evaluated your financial situation, Loan to Value ratio, deposit, and house you are purchasing and is willing to lend you the money.

The lender’s offer will be tailored according to your budget and the property valuation. Remember that you are not obligated to agree to the home loan offer. You can negotiate with the lender and get a complete reassessment and new unconditional approval

When you are satisfied with the terms of the unconditional approval, you can sign the loan contract. Be aware that unconditional home loan approval is not a lifetime approval and lasts from three to six months

How Long Does It Take To Get Unconditional Approval

Banks and other lenders take a specific time for each stage in the home loan approval process. But how long will you have to wait for unconditional home loan approval? Every financial entity in Australia has its terms and conditions, as well as approval time. 

Pre-approval1 hour to six months
Application3 to 7 business days
Valuation3 to 5 business days
Paying LMI1 to 2 days
Unconditional Approval3 to 15 business days
Settlement1 to 5 weeks

Once you have applied, the average time for full home loan approval is four to six weeks

The home loan approval time can depend on the type of loan. For example, the time needed for approval for a loan for an existing house can be faster than the approval for a construction loan. 

Also, loans with less than 20% deposit, high amount loans, loans for heritage-listed homes or loans for self-employed or non-Australian residents can have a slower process for approval.

You might be interested in What is “Subject to” in Real Estate.

Take into account the fees applicable to every stage of the home loan process. For example, the home loan application fee in Australia is between $150 and $700, and the valuation fee ranges from $100 and $300. Additionally, there can be monthly lender fees, rate lock, package, circumstantial, discharging, settlement and other fees. 

Conditional Approval vs Unconditional Approval 

Being pre-approved for a home loan means that you satisfy most of the lender’s criteria for a home loan, and it is likely for them to offer and approve you one. The pre-approval is not the lender’s final decision, and you will have to go through an additional financial evaluation to get full, unconditional approval.

On the other hand, having unconditional approval means that you are ready to take the loan and buy your new home, according to the lender’s assessment. With unconditional home loan approval, you will get an official offer with an exact amount, which is not the case with a pre-approved home loan. 

Lastly, with the pre-approved or conditional approval, you’ll have to meet additional conditions; you won’t need to do so after unconditional approval.

Tips for Getting Unconditional Approval

Many Aussies ask themselves if there is anything they can personally do to influence the lender’s decision. In fact, you can do several things to speed up the process of getting your home loan approved in Australia and making a wise investment.

  • Provide employment history: Your lender will make a decision faster if you show your income consistency, proving you can meet your lending obligations.
  • Save money for a deposit: Putting savings aside will show the lenders that you are a low-risk client. Having over 20% deposit money will save you the trouble of paying LMI.
  • Prepare your documents carefully: Pay attention to the required documents for the home loan application, take your time and fill them out with your latest information. 
  • Get involved in the valuation process: Make communication with the real estate agent and vendor easier and organise faster property access.

Before you are unconditionally approved, every lender checks if there is a foreseeable change that can happen in the future and changes your ability to make repayments. 

Can a Loan Be Denied After Unconditional Approval?

Although the chances of being denied after receiving unconditional approval are slim, there is still a possibility of that happening. To ensure it doesn’t happen, read the loan approval terms and conditions

The main reasons why a loan is declined after unconditional approval can be:

  • drastic changes to the financial balance of the user
  • the need for Lenders’ Mortgage Insurance or 
  • fraud.

What Happens After Unconditional Loan Approval?

When your home loan is approved, you will get a letter of offer with the home loan conditions and details, witness acknowledgement, disbursement, and loan payment form.

Once your loan is approved unconditionally, there are still several steps you must take before the sale is final and you can move into your new home. Here’s what you should do after unconditional loan approval.

  • Decide on the type of home ownership: While you are house hunting, you should carefully review your ownership options, such as sole owner or co-borrower and if you are interested in being a joint tenant or tenant in common.
  • Sing the loan contract: Once your home loan has been unconditionally approved, you’ll need to sign the contract documents with your lender. Before you do so, ensure there are no errors and consult with home loan professionals. If everything is in order, sign and return the documents to your lender.
  • Arrange building insurance: Different insurance is available for houses, units, townhouses, and vacant land. Additionally, don’t forget to organise pre-purchase inspections for your potential home.
  • Seek government grants: Check out the requirements for getting a grant in Australia. For example, with the First Home Owner Grant, you can apply for $10,000.  
  • Property check and settlement: Inspect the property once again to ensure there are no changes since you signed the Contract of Sale and make the final settlement.

When settling in your new home, ensure you make your mortgage repayments on time. If a failure to pay monthly instalments occurs, the lender can legally take away the property and sell it.

Bottom Line

If you are a potential home buyer in Australia looking for a home loan in Australia, it is important to be aware of the timeframe for the unconditional home loan approval process. 

While it is impossible to guarantee a home loan approval, following the tips we have outlined should help you improve your chances of being approved and owning your dream house.


1.How long does it take to get unconditional?

Getting unconditional approval or pre-approved in Australia can be as short as one hour, or it could take up to three or even six months, depending on the lender.

2.What does unconditional approval mean?

Unconditional approval means that you have met all the conditions of the lender and are qualified and approved for a home loan.

3.How long does it take to go from conditional to unconditional?

Before getting from conditionally to unconditionally approved in Australia, you must submit your application, go through valuation and pay your LMI, which takes 7 to 14 business days. After that, 3 to 15 working days is how long it takes to get unconditional approval. 

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