How to avoid loan approval delays

The time it takes to get your loan approved can be just as important as the interest rate or the amount you can borrow.

Whether it’s a looming tax deadline, a car you want to snap-up at the EOFY sales, or your dream home that’s up for auction – don’t let delays get in the way.

Time is money

Since the Royal Commission, a recent analysis of 30,000 mortgages found that approval times have doubled.

Requests for more information have seen the average processing time grow from six weeks to nine weeks since 2018.

While many lender turnaround times are growing, there a few things you can do to help secure a loan without delay.

Use a broker

A broker will also have in-depth knowledge of the paperwork each lender requires, helping to avoid requests for further information.

Lenders will regularly update brokers on turnaround times. So, as well as finding a product that suits your circumstances, brokers can advise which lender can help you meet a tight deadline.

Pre-approval

One way to avoid potential time pressure is to seek a pre-approval. Particularly if you’re in the market for a new home or car, pre-approval will allow you to shop around with more confidence.

Seek help

For more information on which lenders are assessing loans quickly, contact a Liberty Adviser.