Borrow
How to reduce your home loan turnaround time
A surge in consumers looking to borrow continues to put pressure on lenders, leading to delays in processing times, research has revealed.
How to reduce your home loan turnaround time
A surge in consumers looking to borrow continues to put pressure on lenders, leading to delays in processing times, research has revealed.
According to Momentum Intelligence’s Broker Pulse survey, each of the four major banks is currently experiencing delays as strong consumer demand continues to put pressure on lenders.
“Westpac, St.George Banking Group and ANZ continue to experience the longest turnarounds of close to and above 20 days to their initial credit decisions,” Momentum Intelligence said.
“Commonwealth Bank’s turnaround times have continued to worsen again this month after losing ground last month.”
Archistar’s chief economist, Dr Andrew Wilson, explained that the wave of economic support, instigated by the COVID-19 pandemic, is driving the property market and in turn putting pressure on the major lenders.
“The surge in home lending reflects a wave of buying activity with low interest rates, a reviving economy and general positive affordability, key drivers of demand,” Dr Wilson said.
“Various government stimulus policies directed at housing markets are also elevating demand and leading to loan application bottlenecks.”
What are the banks doing?
As the industry battles to deal with the larger than usual loan demand, the major banks have confirmed they’re working towards solving the backlog.
“The exponential growth in home loan application volumes has placed considerable pressure on our support teams and operations, in some instances impacting turnaround times for more involved applications,” Commonwealth Bank have stated.
The National Australia Bank and ANZ have both highlighted that they’re focused on simplifying processes.
“We know the home loan process can be complex, and we’ve taken a number of steps to simplify and speed up the time it takes for approval. This means that, for some customers, we are able to provide unconditional approval within 60 minutes, providing the confidence to act fast, NAB executive, home ownership, Andy Kerr said.
ANZ confirmed that it is continuing to increase its processing capacity by upping the number of staff and upskilling more assessors.
What can consumers do?
ANZ has provided four tips for Australians who are trying to get into the market.
- Do your research prior to starting your home loan application to get a picture of how much you could borrow and what documents you need to supply in support of your application.
- Ensure all relevant documents are present with your application, including other financial institution bank statements or credit card statements.
- Ensure your application is completed correctly with up-to-date supporting documents that meet the requirements of the home loan you’re applying for.
- Speak to your banker/broker to get their help on working through some of these above items ahead of time.
RELATED ARTICLES
About the author
About the author
Loans
Fixing the future: How brokers and lenders can turn rate-hike anxiety into strategic advantage
Australian borrowers are leaning into short-term fixed loans as rate uncertainty lingers, shifting risk from households to lenders and their funding partners. That creates a narrow window for broker ...Read more
Loans
Mortgage mania: Why sluggish turnaround times are the new battleground in booming loan demand
Brokers across Australia are flagging loan processing delays precisely as borrower activity rebounds — a dangerous mismatch for lenders competing on service as much as price. The operational lesson is ...Read more
Loans
Why AI isn't penning Aussie mortgages yet trust trumps tech
Australian borrowers remain wary of AI taking the wheel on home loans, even as brokers and lenders quietly increase behind-the-scenes adoption. The trust gap is the core blocker — and it’s solvable. ...Read more
Loans
Underserved by design: A case study in turning FBAA broker density gaps into growth
Fresh FBAA data confirms broker headcount is rising past 22,000, yet coverage remains uneven — with concentrations in NSW and Victoria and pockets the association identifies as underservedRead more
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
Loans
Fixing the future: How brokers and lenders can turn rate-hike anxiety into strategic advantage
Australian borrowers are leaning into short-term fixed loans as rate uncertainty lingers, shifting risk from households to lenders and their funding partners. That creates a narrow window for broker ...Read more
Loans
Mortgage mania: Why sluggish turnaround times are the new battleground in booming loan demand
Brokers across Australia are flagging loan processing delays precisely as borrower activity rebounds — a dangerous mismatch for lenders competing on service as much as price. The operational lesson is ...Read more
Loans
Why AI isn't penning Aussie mortgages yet trust trumps tech
Australian borrowers remain wary of AI taking the wheel on home loans, even as brokers and lenders quietly increase behind-the-scenes adoption. The trust gap is the core blocker — and it’s solvable. ...Read more
Loans
Underserved by design: A case study in turning FBAA broker density gaps into growth
Fresh FBAA data confirms broker headcount is rising past 22,000, yet coverage remains uneven — with concentrations in NSW and Victoria and pockets the association identifies as underservedRead more
Loans
The new shadow lender: How the ‘Bank of Mum and Dad’ is redrawing Australia’s first-home buyer market
Parental capital has become a decisive force in Australia’s housing market, accelerating deposits, lifting bidding power and creating a two‑speed pipeline of first‑home buyers. This isn’t a feel‑good ...Read more
Loans
The effortless edge: How Australian brokers turn retention into a compounding growth engine with AI and specialisation
Australia’s broking market is crowded, digital-first and unforgiving on acquisition costs. The growth story now is retention—engineered through low-effort client experiences, AI-enabled servicing and ...Read more
Loans
State Street: RBA holds rates at 3.6% as hawkish tone emerges
State Street has said the Reserve Bank of Australia’s (RBA) decision to hold the cash rate at 3.6 per cent reflects a more hawkish policy bias, signalling that the central bank is likely to keep rates ...Read more
Loans
The effortless edge: How brokers turn low-friction service into high-retention value
Client retention in broking is no longer about squeezing a better rate at renewal. It’s about building an ‘effortless’ experience that anticipates needs, removes friction, and compounds loyalty across ...Read more
