Before house hunting, it’s important to assess your income, expenses, credit score, and existing debts.
If your partner (spouse or de facto) isn’t working: This may reduce your borrowing capacity, especially if you have dependents.
Most lenders require at least 5% deposit, and they want to see that you’ve saved it over a period of 3+ months — this is called a genuine savings deposit.
Tip: Avoid lump-sum gifts or transfers just before applying. Instead, deposit savings consistently into a separate account to show saving behaviour.
Pre-approval is essential before making any offers. Real estate agents may pressure you to sign a contract and pay a deposit — but once paid, it’s hard to get refunded if your loan is declined.
Pre-approval helps you:
Know your budget
Strengthen your position as a serious buyer
Avoid signing contracts you can’t follow through
Loan Settlement Timeframe: Standard loan settlement is 42 days (6 weeks) in most Australian states, but it can vary. Some contracts require 30-day settlements, so you must be ready with your finances.
A conveyancer will:
Review contracts
Advise on legal obligations
Coordinate settlement with your lender
You can organise this through Kanova Loans — we work with trusted conveyancers to support your journey.
With pre-approval and a signed contract, your broker will help you:
Finalise your application
Provide updated payslips or bank statements
Liaise with the lender and your conveyancer until settlement
If you’re applying with a small deposit (e.g. 5%), you may need Lenders Mortgage Insurance (LMI) — but we’ll guide you through the best options.
Once approved, the lender will issue loan documents. The next steps are:
Sign and return loan contracts
Arrange building and contents insurance
Finalise any outstanding deposit amount
Your broker and conveyancer will then coordinate settlement — on average, 30–42 days after contract signing.
Start saving early and consistently
Reduce debts and credit limits before applying
Avoid changing jobs or addresses close to application time
Get pre-approved before paying a deposit
Always read the contract — and get legal advice before signing
At Kanova Loans, we guide you through the entire process — with personalised advice, access to over 60 lenders, and reliable support.
Contact us today to get pre-approved and start your homeownership journey with confidence. »
Disclaimer: This blog is for general information only and doesn’t constitute personal financial advice. Speak to a licensed advisor or broker for guidance specific to your situation.
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Kanova Loans helps Australians access home, car, and commercial finance through expert guidance and top lender comparisons — led by trusted senior mortgage broker Anitha Varghese.
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