How long does it take to get conditional approval? This mortgage lender can do it in 20 minutes

The race is on - Australian home loan customers are looking more and more to speed and efficiency as a key priority when it comes to their mortgage goals. 

Applying and gaining approval for a new home loan can take several weeks, depending on the lender and your specific financial situation. But whether you’re heading to the auction this weekend, or you need to refinance from a fixed rate term that is coming to an end, timing is everything when it comes to your next home loan. 

One way that homeowners can make this process easier is to consider lenders with fast, digital applications. And lenders like AMP Bank are offering customers the ability to have their mortgage application processed in a matter of minutes, depending on your circumstances. 

All about AMP Bank’s home loan application process

Traditionally, applying for a home loan can be a time-consuming process that involves filling out multiple forms, finding and supplying personal documents, and not to mention ongoing communication with your lender and/or your mortgage broker. Even after completing the application, it can be days before you find out whether you were approved. 

However, AMP Bank’s online application form is designed to fast-track this by using processing technology throughout the application, such as real-time verifications, algorithms and APIs. This allows the lender to offer the ability to gain conditional approval in only twenty minutes from submitting your application.

In fact, AMP Bank’s website advises that in many cases conditional approval may "be provided immediately after submission”. Understandably, this process may take longer if the lender needs to seek clarifications from you or perform a property inspection.

Please note that eligibility criteria will apply. It’s crucial you review the terms and conditions, as well as other loan factors like rates and fees, before you consider applying.

AMP Bank Essential Home Loan (LVR ≤ 60%)

• Owner Occupied
• Variable
• 40% min deposit

Special

Fast approval. Apply online in minutes. T&Cs apply.

Enjoy a competitive rate, no ongoing fees and generous features with this loan from a major Australian institution.

Interest rate p.a.

6.34%

Comparison rate* p.a.

6.37%

More details

FeaturedAustralian Credit Licence: 234517 AMP Bank terms and conditions

Why speed matters when it comes to home loan applications

After 12 hikes to the Reserve Bank of Australia’s cash rate since April last year, homeowners have been refinancing at record rates. The latest data from the Australian Bureau of Statistics shows that the value of external refinancing jumped 28.5% in March 2023 year-on-year. For owner-occupiers, this was up 3.9% to $14.2 billion in the March quarter alone.

Due to the sheer volume of refinancers, taking out a new home loan can take up to six weeks in the current environment. This is a serious issue for home buyers hoping to snatch up property deals, or for the many fixed-rate home loan customers whose fixed periods are ending in 2023.  

Auction on Saturday, approval on Monday

Approval speed is the new hot ticket in the home loan space, as more and more Australian home buyers want to jump on great property offers quickly. 

The best stock in the market can be sold in a week or less, so it’s crucial that buyers can gain conditional home loan approval in record time. A renovated Queenslander-style home was sold in only five days, with 28 offers under its belt just last week. 

If you find the home of your dreams, you don’t want to lose it because of application wait times, gathering paperwork and cutting through banking red tape. It’s more important than ever for customers to have the ability to gain speedy home loan approval. 

Navigating the fixed-rate mortgage cliff

This year, billions of dollars worth of fixed rate home loans will come to the end of their fixed period - colloquially called the fixed-rate mortgage cliff. When it comes to refinancing a fixed rate - timing is everything. This is where fast applications can come in handy and help homeowners navigate the mortgage cliff to come out on top.

If you leave a fixed rate term early you can be charged costly break fees by your current lender. But if you leave it too late, you’ll find yourself rolled onto the lender’s standard variable rate, which is typically much higher. You may be stuck paying that higher rate for a couple of months, which could cost you hundreds of dollars more in higher charges. 

Because of the current wait times, it may be worthwhile considering prioritising a lender that offers fast-tracked home loan approvals. Be sure to discuss the timing of the end of your fixed period with the new lender so that you may avoid any cross over. 

When you are four to six weeks out from this date, consider beginning the refinancing process. Don’t forget to factor in whether or not the lender offers a fast-tracked online application process to help speed this along.

What to keep in mind

As fast-tracked home loan applications are a popular feature for Australian customers, other lenders, such as Unloan and Bendigo Bank are offering customers speedy approval times. Regardless of the lender you choose for your next home, it’s crucial that you remember there is more to a mortgage than the application process.

You also want to ensure you’re comparing factors, like the interest rate, upfront and ongoing fees, as well as any features on offer. Using comparison tools, like tables and calculators, may make this process much easier. 

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