Welcome to the start of your home loan journey! We know that the process can seem confusing and a little overwhelming. But it doesn’t have to be. We’ve broken down the key steps to help you understand what to expect.

The best way to understand home loans and how to choose the right one is to speak to an expert. When you sit down with us at EZ MORTGAGE BROKER, we’ll get to know you and your financial goals. We will help you understand all the steps, from choosing a loan to the final settlement.

The best part? We come to you. We can meet at your home, office, or a local café. We’re available day, night, or on the weekend to make it as easy as possible for you.

How Does the Process Work?

1. Arrange a Pre-Approved Loan

Getting a pre-approved loan is a smart first step, especially if you haven’t found a property yet. It gives you a clear idea of your spending limits. This means you can move quickly to make an offer when you find the perfect home. Having pre-approval may also make your offer stronger than other buyers who don’t have it.

Note: Even with a pre-approval, always include a ‘subject to finance’ clause in your contract to protect yourself.

2. Find Your Property

Take your time and do your research. Look at property prices in the area you like. Think about future growth and what local infrastructure is available, such as roads, public transport, schools, and shops. If you’re unsure about property values, you might want to get a professional valuation before you make a final decision.

3. Make an Offer and Sign a Contract of Sale

Once you’ve found a property, you’ll sign a Contract of Sale. This contract confirms the price and all the terms and conditions. It’s very important to include appropriate conditions, such as:

  • Subject to lender approval.
  • A satisfactory building inspection report.
  • A satisfactory pest inspection.

The time from signing the contract to settlement is usually six weeks.

Important: Your lender will still need to value the property before they give final approval, even if you have pre-approval. If the valuation is not satisfactory, they may not approve your loan.

4. Appoint a Conveyancer

You’ll need a conveyancer or solicitor to handle the legal parts of the sale. Your conveyancer will check all rates and taxes, land use approvals, and other important searches. They will also help with inspections. On settlement day, they will make sure the correct money is transferred from your lender to the seller and that all fees, like Stamp Duty, are paid. Then, you can take legal ownership of the property.

5. Pay a Deposit

A deposit is required after the Contract of Sale is signed by both you and the seller. You won’t have access to your home loan yet, so this deposit will need to come from your savings. In some cases, you may be able to arrange a deposit bond until settlement.

6. Cooling Off Period

If you didn’t buy your property at auction, you may have a ‘cooling off period.’ This is a time when you can cancel the contract, though there may be a small penalty. Cooling-off periods are not available in every state, so it’s a good idea to check your rights with the relevant state authority.

Unconditional Contracts & Legal Advice

Be very careful about signing an unconditional contract or bidding at an auction, especially if you’re not sure you’ll be able to get finance. You should always consider getting legal advice before you sign a sale contract or bid at an auction.

Ready to Start Your Loan Journey?

The process can be simple with the right support. Contact us now to start your journey with expert guidance from a local broker.

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