What happens after your loan is unconditionally approved?

Purchasing a property to occupy or invest in is one of the biggest financial and life decisions that people will ever have to make. So, what happens once your home loan application has been unconditionally approved by your chosen lender?

We're glad you asked! First of all, you celebrate! You have just reached a major milestone and are one step closer to your property ownership goals.

Once you are done celebrating, your next steps will vary. It will depend on the type of loan you have been approved for and whether you're:

Buying an established property,
Building your new home with a construction loan, or
Refinancing your existing mortgage.

Keep reading to learn the differences in each scenario, or click on the links above to go straight to the section with the relevant information your most interested in.

Buying an established property

Here is what happens after you loan is unconditionally approved when buying an established property:

We will provide you with an unconditional letter from the Lender that you can pass on to your legal representative, so that you can satisfy your finance clause in your Contract of Sale.
Some Lenders will have already supplied you with a link via SMS or email to set up your online banking. This will enable you to open accounts and, in some instances, enable online loan document signing (where required).
Loan Documents will then be issued to you directly by the Lender or the Lender’s Solicitors. This generally takes anywhere between 2-5 business days and is sent via an online digital signing platform, such as DocuSign, Digi sign, Kwil or directly to your online banking inbox. Instructions will be included in your online pack. This is a legally binding document so if any information or loan details are incorrect, please bring it to our attention. In some instances (if there is a guarantor or change of name on Property Title) documents will be issued manually and they will need to be printed, signed and witnessed alongside a JP.
As you have purchased a property, you will more than likely be contributing funds to complete the purchase alongside the funds provided by the Lender. We will advise you if you need to contact the Lender to open new Offset/Redraw or Everyday account/s that will be linked to your new home loan account. Some Lenders will do this on your behalf and provide you with account details on the loan documents or via email or SMS. The new account that you have opened and linked to your home loan will be used for any surplus or deficit of funds at settlement, cashback and loan repayments.
If you have not already done so, you will need to arrange Insurance cover for the property that you have purchased. Some Lenders may specify a particular amount that needs to be noted on the Policy and all Lenders will require you to note themselves as holding the ‘Mortgage’ or having an ‘Interest’ in the property. A copy of the Certificate of Currency will need to be provided to the Lender, via online loan signing or through us, your broker.
Once these items have been addressed the Lender will verify all your loan documents, insurance and bank account information and prepare for settlement by communicating with both the Seller’s solicitor and their own. The settlement date will be noted on the Contract of Sale but can be amended if all parties agree, it is generally completed within 30-60 days of Contract signing.
Once a settlement date and time has been booked and agreed upon by all parties, the only item that will be left for you to do is ensure that any funds needed for settlement are placed into your nominated bank account 3 business prior.
On settlement day the funds will be disbursed to the Vendor and you being the Purchaser will receive a set of keys to your new property.

Happy days! You are now a new Homeowner or Landlord!

Building your home with a construction loan

Building your own home allows you to design and customise your dream home however you desire. You create your own floor plan, style and colours, that represent your individual likes.

Here is what will happen after you receive unconditional approval for your finance:

We will provide you with an unconditional letter from the Lender that stipulates your loan offer, which includes the term and interest rate, as well as your personal details. You can pass this on to your legal representative and builder, so that you can satisfy your finance clause in your Contract of Sale and Build Contract.
Some Lenders will have already supplied you with a link via SMS or email to set up your online banking. This will enable you to open new accounts and, in some instances, enable online loan document signing (where required).
Loan Documents will be issued to you directly by the Lender or the Lender’s Solicitors. This generally takes anywhere between 2-5 business days and is sent via an online digital signing platform, such as DocuSign, Digi sign, Kwil or directly to your online banking inbox. Instructions will be included in your online pack. This is a legally binding document so if any information or loan details are incorrect, please bring it to our attention. In some instances (if there is a guarantor or change of name on Title) documents will be issued manually and they will need to be printed, signed and witnessed alongside a JP.
As you have purchased land and engaged a builder for construction, you will more than likely be contributing funds to complete the purchase alongside the funds provided by the Lender. We will advise you if you need to contact the Lender to open new Offset/Redraw or Everyday account/s that will be linked to your new home loan account. Some Lenders will do this on your behalf and provide you with account details on the loan documents or via email or SMS. The new account that you have opened and linked to your home loan will be used for any surplus or deficit of funds at settlement, cashback and loan repayments.
Once these items have been addressed the Lender will verify all your loan documents, insurance and bank account information and prepare for settlement by communicating with both the Developers solicitor and their own. The settlement date will be noted on the Contract of Sale but can be amended if all parties agree, it is generally completed within 30-60 days of Contract signing, although if the Title of the Land has not been registered this may take longer.
Once settlement has been booked and agreed upon by all parties, the only item that will be left for you to do is ensure that any funds needed for settlement are placed into your nominated bank account 3 business days before the settlement due date.
On settlement day the funds will be disbursed to the Vendor and you, being the Purchaser, will take ownership of the Land and are ready to construct your new home.
Your Lender will require the following items prior to issuing the Letter of Commencement to the builder which enables them to fund the build and pay the Invoice requests.
1. Builder's Insurance
2. Builder's warranty insurance
3. Council Approved Plans and Specifications

Let the building begin!

Refinancing your existing mortgage

If you’ve had your current home loan for a number of years, it’s more than likely that your needs have changed, your interest rate is no longer competitive, or your loan may not have features you now need. The advantage of refinancing your home loan is for you to benefit from lower interest rates and potential cashback offers, that save you money over the long term.

So, what happens once your refinance application has been approved by your chosen lender?

We will provide you with an unconditional letter from the Lender that stipulates your loan offer, which includes the term and interest rate, as well as your personal details.
You will be required to Discharge your Home Loan from your current Lender to the new one. In some instances, we can complete this form for you and submit it on your behalf, otherwise you will need to contact your existing lender to request the required Discharge Form.
Some Lenders will have already supplied you with a link via SMS or email to set up your online banking. This will enable you to open new accounts and, in some instances, enable online loan document signing (where required).
Loan Documents will be issued to you directly by the Lender or the Lender’s Solicitors. This generally takes anywhere between 2-5 business days and is sent via an online digital signing platform, such as DocuSign, Digi sign, Kwil or directly to your online banking inbox. Instructions will be included in your online pack. This is a legally binding document so if any information or loan details are incorrect, please bring it to our attention. In some instances (if there is a guarantor or change of name on Title) documents will be issued manually and they will need to be printed, signed and witnessed alongside a JP.
We will advise you if you need to contact the Lender to open new Offset/Redraw or Everyday account/s that will be linked to your new home loan account. Some Lenders will do this on your behalf and provide you with account details on the loan documents or via email or SMS. The new account that you have opened and linked to your home loan will be used for any surplus or deficit of funds at settlement, cashback and loan repayments.
You will need to contact your Insurer to advise them that you have refinanced your current home loan. Some Lenders may specify a particular amount that needs to be noted on the updated Insurance Policy and all Lenders will require you to note themselves as holding the ‘Mortgage’ or having an ‘Interest’ in the property. A copy of the Certificate of Currency will need to be provided to the Lender, via online loan signing or through us, your broker.
Once these items have been addressed the Lender will verify all your loan documents, insurance and bank account information and prepare for settlement by communicating with your current Lender from which you are refinancing. Settlement is generally completed within 2 weeks of signing loan documents.
On settlement day the funds will be disbursed to your current Lender from your new one.
If there is a cashback offer on the table, that will be processed by the Lender into your nominated bank account on your loan documents within 14- 90 days of settlement.

Great work, you will now be saving thousands of dollars over the term of your loan!

Whatever scenario you find yourself in, we're here to guide you through the steps and make sure it is kept simple and easy. Just another reason to work with a great mortgage broker!