Showing home loans based on a loan of
$
with a deposit of
Advertised Rate

3.90%

Variable

Comparison Rate*

4.31%

Company
Greater Bank
Repayment

$975

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.74

/ 5
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Advertised Rate

4.17%

Variable

Comparison Rate*

4.35%

Company
Summerland Credit Union
Repayment

$1,043

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.55

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Advertised Rate

4.37%

Variable

Comparison Rate*

4.55%

Company
Summerland Credit Union
Repayment

$1,093

monthly

Features
Redraw facility
Offset Account
Borrow up to 95%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.55

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Advertised Rate

4.64%

Variable

Comparison Rate*

4.71%

Company
QBANK
Repayment

$1,160

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.90

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Advertised Rate

4.35%

Variable

Comparison Rate*

4.72%

Company
Heritage Bank
Repayment

$1,088

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.86

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Advertised Rate

4.51%

Variable

Comparison Rate*

4.91%

Company
RAMS
Repayment

$1,128

monthly

Features
Redraw facility
Offset Account
Borrow up to 94.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.65

/ 5
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Advertised Rate

4.95%

Variable

Comparison Rate*

5.11%

Company
Warwick Credit Union
Repayment

$1,745

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.78

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Advertised Rate

5.52%

Variable

Comparison Rate*

5.68%

Company
Delphi Bank
Repayment

$1,380

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.59

/ 5
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Advertised Rate

5.33%

Variable

Comparison Rate*

5.73%

Company
Commonwealth Bank of Australia
Repayment

$1,333

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.71

/ 5
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Advertised Rate

5.93%

Variable

Comparison Rate*

6.22%

Company
RAMS
Repayment

$1,483

monthly

Features
Redraw facility
Offset Account
Borrow up to 79.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.80

/ 5
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Advertised Rate

6.03%

Variable

Comparison Rate*

6.22%

Company
Commonwealth Bank of Australia
Repayment

$1,508

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.71

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Advertised Rate

2.74%

Variable

Comparison Rate*

2.61%

Company
Homeloans.com.au
Repayment

$685

monthly

Features
Redraw facility
Offset Account
Borrow up to 60%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

2.23

/ 5
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Advertised Rate

3.90%

Variable

Comparison Rate*

4.31%

Company
Greater Bank
Repayment

$975

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.74

/ 5
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Advertised Rate

4.16%

Variable

Comparison Rate*

4.35%

Company
Bank Australia
Repayment

$1,040

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.92

/ 5
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Advertised Rate

4.49%

Variable

Comparison Rate*

4.67%

Company
Summerland Credit Union
Repayment

$1,123

monthly

Features
Redraw facility
Offset Account
Borrow up to 80%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.55

/ 5
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Advertised Rate

4.35%

Variable

Comparison Rate*

4.72%

Company
Heritage Bank
Repayment

$1,088

monthly

Features
Redraw facility
Offset Account
Borrow up to 85%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.86

/ 5
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More details
Advertised Rate

4.60%

Variable

Comparison Rate*

4.76%

Company
Greater Bank
Repayment

$1,150

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.71

/ 5
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Advertised Rate

4.69%

Variable

Comparison Rate*

4.86%

Company
Summerland Credit Union
Repayment

$1,173

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.55

/ 5
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More details
Advertised Rate

5.33%

Variable

Comparison Rate*

5.73%

Company
Commonwealth Bank of Australia
Repayment

$1,333

monthly

Features
Redraw facility
Offset Account
Borrow up to 90%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.71

/ 5
Go to site
More details
Advertised Rate

5.93%

Variable

Comparison Rate*

6.22%

Company
RAMS
Repayment

$1,483

monthly

Features
Redraw facility
Offset Account
Borrow up to 89.9999%
Extra Repayments
Interest Only
Owner Occupied
Real Time Rating™

1.80

/ 5
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Learn more about home loans

How does a line of credit loan work?

Borrowers who have built up some equity in their home, but are looking for some extra financial flexibility, may be interested in a line of credit (LOC) loan.

A line of credit functions similarly to a credit card, where you have the flexibility to borrow and repay money up to a certain credit limit. This limit is typically based on the equity in your home, though you may only be able to access a limited percentage of this equity.  

For example, imagine you previously bought a $500,000 home, and currently have $200,000 equity in the property, with $300,000 still owing on the mortgage.

If you applied for a line of credit for 80 per cent of your equity, you’d be able to borrow up to $160,000 at maximum from your credit account.

You may be able to access money from your line of credit by writing cheques, or by using a debit card.

What are the features of a line of credit loan?

The key features of the line of credit loan are:

  • During the life of the loan you can withdraw money as you need it, without having to notify the lender about what the funds are being used for each time you withdraw.
  • You can access the loan to borrow money repeatedly, so long as you make enough repayments to keep the total amount you’ve borrowed under the maximum credit limit.  
  • You’re only charged interest on how much you’ve currently borrowed, rather than on your maximum credit limit.
  • You can pay back any amount as long as you make the minimum monthly payments set by the lender. Minimum monthly repayments may be a combination of interest and principal, or interest only.
  • The interest rate is usually higher than the standard variable rate charged by banks and financial institutions on home loans, but below the typical interest rate charged on personal loans or credit cards.

How does a line of credit loan differ to a personal loan?

The line of credit loan is different to a standard personal loan, where you borrow a lump sum that you’ll repay with interest over a fixed loan term. A line of credit instead allows you to borrow and repay money as you choose, and only pay interest on what you’ve currently borrowed.

Personal loans may be available with variable or fixed interest rates, with fixed rate allowing you to budget for consistent and regular repayments. Lines of credit are more likely to charge variable rates of interest, so it’s possible that the amount of interest you're charged could change in time.

While secured personal loans are available (for example, many car loans) unsecured personal loans are also an option. Lines of credit that are secured against you home equity are more likely to have lower interest rates than many personal loans.

Keep in mind that line of credit personal loans also exist, and also function much like a credit card with a higher than average credit limit. However, because a line of credit home loan is secured by your home equity, it will typically have a higher credit limit and lower interest rate than a line of credit personal loan.

How does a line of credit loan differ from a credit card?

Lines of credit typically function similarly to credit cards, allowing you to borrow and repay money when you choose. However, because credit cards are typically unsecured, a line of credit will often have a lower interest rate and higher credit limit.

This is why some borrowers choose to opt for a line of credit, rather than simply increasing their existing credit card limit or applying for a second credit card.

What would you use a line of credit loan for?

Lines of credit are often used for:

  • Home renovations and repairs
  • Buying another property
  • Taking a holiday
  • Buying a car

For example, you may have equity in your home and are considering a series of repairs and minor alterations.

If you don’t have a firm idea of how much money you will need in your renovation budget, opening a line of credit can give you the flexibility to pursue your project, knowing you can draw down funds to cover the costs of each job, making repayments as you go.

Being smart about your line of credit loan

Financial discipline and organisation will help you manage your debt on a line of credit loan. There are several simple ways you can utilise its features to your full advantage:

  • One common way of reducing the cost of the loan is to have your income deposited into your line of credit loan account instead of your bank account, to offset the overall loan amount. That way, the interest on the loan is only calculated on the remaining balance of the account, lowering your overall interest charges. You can then use the line of credit to help manage your everyday cash flow.
  • Any extra income you receive, such as a tax refund, can also be deposited into the account as an additional repayment, contributing to reducing the interest payable.
  • Consider making a regular repayment of more than the minimum required amount a part of your monthly or fortnightly budget. This could help to offset some of your financial risk if you spend more than you planned with your line of credit.
  • If property prices in your area are not increasing, try to be careful about your spending with your line of credit, in case your home’s value won’t be enough to cover everything you’ve borrowed if you end up in a tight spot and need to sell or refinance.

What should I be aware of with line of credit loans?

  • Line of credit home loans typically have higher interest rates than those of home loans offered by most banks and mortgage lenders.
  • Just like with a credit card, it’s tempting to only make the minimum repayments on a line of credit, until more interest charges have built up than you can comfortably afford to repay. Regular repayments that gradually reduce what you owe can make a big difference.
  • Most lines of credit require you to have a good credit rating to apply. Before you submit any applications, check your credit score and find out if you can do anything to improve it and meet the eligibility criteria. The better your credit history, the greater the likelihood of being offered a lower interest rate.
  • As with a standard variable loan, the interest rate on a line of credit loan is vulnerable to overall market movements. Ensure you have a realistic financial buffer in place in case of interest rate rises.
  • Some lenders  charge monthly or annual fees on their line of credit, as well as upfront application fees, valuation fees and discharge fees. You’ll need to factor all of these costs into your financial calculations when comparing line of credit loans from a range of different lenders.
  • As with more traditional secured loans, if a line of credit loan isn't repaid according to the terms of the contract, the lender may be able to seize your property in order to recoup the debt.
  • A line of credit loan isn't the only way to access equity in a property. A redraw facility or offset account can also be used to access money from your home loan, though these features work differently and may not suit every borrower.

Who offers line of credit loans?

Banks, credit unions and other financial institutions in Australia offer lines of credit, which can offer a valuable way to manage your finances when you require some flexibility as you work towards your goals.

Comparing line of credit loans can help you work out which option may best suit your financial situation, both now and in the future. If you need help, consider contacting a mortgage broker for advice.

Frequently asked questions

How does a line of credit work?

A line of credit functions in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need it, with interest paid on the outstanding balance.

Popular products include Commonwealth Bank Viridian Line of Credit, ANZ Equity Manager, Westpac Equity Access and NAB Flexiplus.

What is a line of credit?

A line of credit, also known as a home equity loan, is a type of mortgage that allows you to borrow money using the equity in your property.

Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.

This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.

What are extra repayments?

Additional payments to your home loan above the minimum monthly instalments, which can help to reduce the loan’s term and remaining payable interest.

What is a bad credit home loan?

A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.

If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.

What is a credit file?

A comprehensive summary of your credit history from an authorised credit reporting agency.

It includes your credit details, credit taken in the last five years, any default payments or credit infringements, arrears, repayment history, bankruptcy filings and a list of credit applications (including unapproved credit applications) in addition to your personal details.

Where can I get all the information about an ANZ first home buyer’s loan?

As a first home buyer, you may require help and hand-holding, and as such ANZ has the buying your first home section on its website full of important information. ANZ also has a form in this section you can fill out to get a free consultation from an ANZ First Home Coach and create your own plan for buying your first home. This coach will help you understand where your current income is being spent and plan for your home loan repayments. You’ll get a clear picture of the costs involved in purchasing a property and how to budget or save for these costs. The coach will help you understand different deposit options and manage your accounts to enhance your savings.

There are three types of ANZ first home loans - Standard Variable, Fixed, and Equity Manager. The features, interest rates, and terms for each are different, and you can compare them here.

When they apply for an ANZ home loan, first home buyers can also get guidance on applying for the First Home Owner Grant (FHOG). This is a one-off government grant that may be available to you when you’re buying your first home. The eligibility criteria for FHOG differs between the different states and territories, which is why it’s helpful to have expert advice when applying.

Can I get a NAB home loan on casual employment?

While many lenders consider casual employees as high-risk borrowers because of their fluctuating incomes, there are a few specialist lenders, such as NAB, which may provide home loans to individuals employed on a casual basis. A NAB home loan for casual employment is essentially a low doc home loan specifically designed to help casually employed individuals who may be unable to provide standard financial documents. However, since such loans are deemed high risk compared to regular home loans, you could be charged higher rates and receive lower maximum LVRs (Loan to Value Ratio, which is the loan amount you can borrow against the value of the property).

While applying for a home loan as a casual employee, you will likely be asked to demonstrate that you've been working steadily and might need to provide group certificates for the last two years. It is at the lender’s discretion to pick either of the two group certificates and consider that to be your income. If you’ve not had the same job for several years, providing proof of income could be a bit of a challenge for you. In this scenario, some lenders may rely on your year to date (YTD) income, and instead calculate your yearly income from that.

What are the NAB term deposit interest rates for businesses?

If you’re looking to lock in a return on your business savings, one option is a business term deposit with NAB. The big four bank provides competitive interest rates while giving you the flexibility to choose the term. NAB offers business term deposit interest rates for investments of between $5,000 to $499,999.

NAB doesn’t charge any monthly account or application fees. The interest is calculated daily and for the 90-day term and six months term, you will get paid when the deposit matures. For the 12 months term, you can either choose to get paid monthly, quarterly, half-yearly or annually. 

If you wish to withdraw your funds before the deposit matures, you need to give NAB 31 days notice. However, they do make exceptions if you’re experiencing hardship and need the funds immediately. Either way, you may have to bear the prepayment cost, which you can learn more about in the Terms and Conditions.

How do you qualify for a CBA home loan with casual employment?

Qualifying for a home loan without a full-time job may be challenging, but it can be done. The first step is to understand how a CBA home loan is assessed when you have casual employment.

Most lenders will assess your expenses and savings while checking your loan eligibility, checking on factors crucial to home loan approval, such as if your bills are paid on time and what your credit score presently looks like. 

Your income can be one of the most critical factors to determine your final approved home loan amount. As such, you’ll need to provide payslip copies to lenders to assist them in assessing your income during the loan tenure, regardless of your employment status, full-time, part-time, or otherwise.

Casual employees will want to be casually employed for at least 12 months to be eligible for a home loan. Alternatively, you want to have worked as a permanent casual worker (working for a fixed number of hours per week) for at least one month, or you should have been in your current job for a minimum of three months (if the hours are irregular) to be eligible for the loan.

How can I get ANZ home loan pre-approval?

Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget. 

At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.

An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.

You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).

Why should I get an ING home loan pre-approval?

When you apply for an ING home loan pre-approval, you might be required to provide proof of employment and income, savings, as well as details on any on-going debts. The lender could also make a credit enquiry against your name. If you’re pre-approved, you will know how much money ING is willing to lend you. 

Please note, however, that a pre-approval is nothing more than an idea of your ability to borrow funds and is not the final approval. You should receive the home loan approval  only after finalising the property and submitting a formal loan application to the lender, ING. Additionally, a pre-approval does not stay valid indefinitely, since your financial circumstances and the home loan market could change overnight.

 

 

How can I apply for a first home buyers loan with Commonwealth Bank?

Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.

You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.

You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.

CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property.  The link to download this app is available on the same webpage.

If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.

Can I apply for an ANZ non-resident home loan? 

You may be eligible to apply for an ANZ non-resident home loan only if you meet the following two conditions:

  1. You hold a Temporary Skill Shortage (TSS) visa or its predecessor, the Temporary Skilled Work (subclass 457) visa.
  2. Your job is included in the Australian government’s Medium and Long Term Strategic Skills List. 

However, non-resident home loan applications may need Foreign Investment Review Board (FIRB) approval in addition to meeting ANZ’s Mortgage Credit Requirements. Also, they may not be eligible for loans that require paying for Lender’s Mortgage Insurance (LMI). As a result, you may not be able to borrow more than 80 per cent of your home’s value. However, you can apply as a co-borrower with your spouse if they are a citizen of either Australia or New Zealand, or are a permanent resident.

Does UBank offer home loan pre-approvals?

If you’re applying for a home loan with UBank, you can first get an approval in principle. You’ll need to provide information about your job and earnings, your household expenses, the assets you own and the debts you owe. 

UBank will assign a home loan specialist to discuss these details over a phone call, which can take about 30 minutes. 

The bank will then confirm if you’ve received in-principle approval for your home loan. Depending on how you submit your documents, this could take a few days or a few weeks. If successful, the approval will be valid for 60 days. 

Does Westpac offer loan maternity leave options?

Having a baby or planning for one can bring about a lot of changes in your life, including to the hip pocket. You may need to re-do the budget to make sure you can afford the upcoming expenses, especially if one partner is taking parental leave to look after the little one. 

Some families find it difficult to meet their home loan repayment obligations during this period. Flexible options, such as the Westpac home loan maternity leave offerings, have been put together to help reduce the pressure of repayments during parental leave.

Westpac offers a couple of choices, depending on your circumstances:

  • Parental Leave Mortgage Repayment Reduction: You could get your home loan repayments reduced for up to 12 months for home loans with a term longer than a year. 
  • Mortgage Repayment Pause: You can pause repayments while on maternity leave, provided you’ve made additional repayments earlier.

When applying for a home loan while pregnant, Westpac has said it will recognise paid maternity leave and back-to-work salaries. All you need is a letter from your employer verifying your return-to-work date and the nature of your employment. Your partner’s income, government entitlements, savings and investments will may help your application.

How do I get a pre-approved home loan with Aussie?

Getting Aussie home loan pre-approval means receiving conditional support from Aussie Home Loans to borrow the money you need to buy a home. 

It’s an indication of the approximate amount Aussie may offer you, subject to some terms and conditions. Keep in mind, having a pre-approved home loan does not guarantee an actual approval of your loan when it comes time to buy.

Aussie home loan pre-approval often involves speaking to one of the lender’s brokers. You can make an appointment online. You’ll often have to submit your personal details and other information about your assets, income, liabilities and expenses.  It’s worth remembering that a pre-approved loan is usually valid for a few months.

Does the family tax benefit count as income?

The family tax benefits are one of several government support payments that are not considered taxable income. Other such payments include child care subsidies, economic support payments, rent assistance, and carer allowances. If you file a tax return, you typically don’t need to mention such income on the return. However, some home loan lenders may accept family tax benefits as an income source when reviewing your home loan application. You’ll still need to meet other lending requirements, such as having a sufficiently high credit score and enough savings for a deposit before the loan will be approved.

Aussies receiving family tax benefits usually have an adjusted taxable income of no more than $55,626 a year. Alternatively, one spouse can be receiving income support payments from the government to be eligible. Most importantly, they need to have children dependent on them for care at least 35 per cent of the time. Children between the ages of 16 and 19 should be either full-time secondary students or have a somewhat comparable study load unless the government exempts them from these study requirements. 

How do I get a Suncorp home loan pre-approval?

Getting home loan pre-approval helps you work out a budget to help you search for a suitable property and make an offer with confidence. Once you put in an application, you should get your pre-approval outcome within two business days. To help get a fast turnaround time of your pre-approval application, ensure all the information and documentation that Suncorp requires. This includes proof of identification, recent payslips, bank account and credit card statements.

You can submit the home loan pre-approval application online. You’ll be asked for information about your income, expenses, assets, and debts. It should take you about 10 minutes to fill out the application, and you can do it free of charge. A Suncorp lending specialist will review your application and contact you within 24 hours or the next working day. Suncorp will not run a credit check until you have heard from this lending specialist.

Once you get Suncorp home loan pre-approval, it’s valid for 90 days. If you don’t find a property you wish to buy in this time you may be able to apply for an extension, speak to your Suncorp lending specialist about this.

How long does Bankwest take to approve home loans?

Full approval for a home loan usually involves a property valuation, which, Bankwest suggests, can take “a week or two”. As a result, getting your home loan approved may take longer. However, you may get full approval within this time if you applied for and received conditional approval, sometimes called a pre-approval, from Bankwest before finalising the home you want to buy.  

Another way of speeding up approvals can be by completing, signing, and submitting your home loan application digitally. Essentially, you give the bank or your mortgage broker a copy of your home’s sale contract and then complete the rest of the steps online. Bankwest has claimed this cuts the approval time to less than four days, although this may only happen if your income and credit history can be verified easily, or if your home’s valuation doesn’t take time.

Can I get a NAB first home loan?

The First Home Loan Deposit Scheme of NAB helps first home buyers purchase a property sooner by reducing the upfront costs required. This scheme is offered based on a Government-backed initiative, with10,000 available places announced in October 2020.

Suppose your application for the NAB first home buyer loan is successful. In that case, you’ll only need to pay a low deposit, between 5 and 20 per cent of the property value and won’t be asked to pay lender's mortgage insurance (LMI). You’ll also receive a limited guarantee from the Australian government to purchase the property.

If you’re applying for the NAB first home buyer home loan as an individual, you need to have earned less than $125,000 in the last financial year. Couples applying for the NAB first home loan need to have earned less than $200,000 to be eligible. To be considered a couple, you need to be married or in a de facto relationship. A parent and child, siblings or friends are not considered a couple when applying for a NAB first home loan.

The NAB First Home Loan Deposit Scheme is currently offered only to purchase a brand new property, rather than an established property.