5 ways to make your home loan application easier this year

Not sure where to start with the home loan application process? We show you some key ways to make it much simpler.

Getting ready to apply for a home loan? The good news is that it doesn't have to be complex. We show you the key things you need to know for an easier home loan application.

1. Opt for a digital application process

Digital applications are far more streamlined than traditional paper applications, leveraging automated tools for assessment and income verification. Digital processes also allow the application to be validated in real time.

They can also provide digital security for your application and records – an important consideration in an online world.

Online loan applications don't have to come from small fintech startups you've never heard of either. Many of Australia's oldest finance brands – like AMP – have invested heavily in the digital space, combining experience with new technology.

Let's take a look at the AMP Essential Home Loan as an example.

The application process is entirely digital and powered by technology from Nano Digital Home Loans. You don't need to upload financial verification documents.

It's a streamlined loan that offers unlimited additional repayments (potentially saving you a substantial amount on interest) and no AMP fees.

It's important to compare your home loan options and look for one that suits your specific needs.

2. Look for lenders with fast approval times

One of the traditional problems with home loans has been finding a lender that doesn't take weeks to give you an outcome on your application.

Although this has been improving in recent years, it's still not unheard of. So before you apply, it's worth checking the lender's turnaround times for applications.

Let's take a look at an example. In many cases, a conditional approval will be received immediately with AMP's Essential Home Loan, and unconditional approval is possible within an hour.

Having a quicker approval process makes it easier to take advantage of property opportunities. Whether you're looking to purchase your first home or are refinancing an existing mortgage, it means you're not stuck in limbo.

3. Check your credit score

Credit scores don't have the same cultural prominence in Australia that they do in the US, but that doesn't mean they're unimportant.

They can have a real impact on the types of loans you'll have access to as a borrower. Indeed, they can impact whether you'll be able to borrow or not at all.

So checking your credit score before you start the application process is key.

If your credit score isn't so great, you may need to reconsider whether now is the best time for you to borrow. There are also steps you can take to improve your credit score.

4. Gather your documents ahead of time

Digital application processes don't tend to be as document-heavy as the traditional paper-based process. However, it is still important to have some key pieces of information handy.

Generally, you'll need to be able to prove your identity, provide proof of income and assets and offer clear information about the property you're looking to buy.

AMP's digital application technology can verify your income digitally, without the need to upload excessive documents.

Every lender is different, but our guide to the documents you need for a home loan application will give you an overview of some of the most common considerations.

5. Don't send scattershot applications

A common mistake many new borrowers make is applying for multiple loans at the same time to "increase their chances" of getting a successful loan.

But this is a bad idea. As part of the application process, lenders make inquiries about your lending history. If it looks like you're applying for multiple loans at once, it can raise suspicions, reduce your chance of approval and damage your credit rating.

A representative from the lender should be able to answer any questions you may have about the loan product ahead of time. So make sure you look at a loan in detail before you send an application.

Discover more about the AMP Essential Home Loan

• Extra info about AMP

  The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.

  It's important to consider your circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what's right for you. This information hasn't taken your circumstances into account. Information including interest rates is subject to change without notice.

  A target market determination for these products is available on our TMD page.

  AMP Bank is a member of the Australian Banking Association (ABA) and is committed to the standards in the Banking Code of Practice.

  The comparison rate is calculated for a secured loan for an amount of $150,000 over a 25 year term.

  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

  Information including interest rates is correct as at 17 April 2023 and is subject to change without notice. Terms and conditions apply and are available at amp.com.au/bankterms or by calling 13 30 30.

  Fees and charges are payable.