Most delays in a home loan are predictable. They happen at the same four points every time, and all four can be shortened by preparation rather than by chasing.
Typical timing for every stage from enquiry to settlement in New South Wales, the four points where applications stall, and what not to do before settlement.
The timings below are typical rather than guaranteed. A complete application moves through the early stages quickly, while an incomplete one restarts the clock each time something is requested.
| Stage | Typical time | What can hold it up |
|---|---|---|
| Initial assessment and lender selection | 1 to 3 days | Incomplete documents |
| Pre-approval | 1 to 3 weeks | Credit history queries, complex income |
| Property search and offer | Weeks to months | Entirely up to the market |
| Formal application after exchange | 2 to 5 days to submit | Waiting on the contract |
| Valuation | 3 to 10 days | Access to the property, remote locations |
| Formal approval | 1 to 3 weeks | Valuation shortfall, further conditions |
| Loan documents issued and returned | 1 to 2 weeks | Signing errors, postal delay |
| Settlement | Commonly 6 weeks from exchange in NSW | Discharge on a refinance |
Related reading sits in how long approval takes.
The difference between conditional and formal approval matters here, and it is explained in conditional compared with unconditional approval. Only one of them is a commitment to lend.
Approval is assessed on your position at the time. Change that position and the lender can reassess, including after formal approval.
ASIC’s overview of the process is at Moneysmart, choosing a home loan.
For a purchase, allow one to three weeks for pre-approval and then six weeks from exchange to settlement, which is the standard New South Wales period. The property search in between is open-ended. A refinance typically takes four to eight weeks overall, with the discharge at your existing lender usually the longest single step.
Sometimes, if both parties agree and all the lender conditions are met, but it requires the vendor’s consent and both conveyancers to be ready. The loan documents must be returned and the lender must have certified funds available. Do not assume an early settlement is possible when planning removalists or the end of a lease.
The lender lends against the lower of the purchase price and the valuation, so a shortfall increases the deposit you need. You can ask for the valuation to be reviewed with supporting sales evidence, or apply to a different lender whose valuer may reach a different figure. Both take time, so raise it immediately.
It usually shortens the early stages, because the application goes to a lender whose policy fits your situation rather than to one that will decline after two weeks of assessment. It does not change the lender’s own processing times or the statutory settlement period, both of which are outside anyone’s control.
The timeline is mostly predictable. What varies is how long you spend waiting on documents, and that part is yours to control.
Read more about residential lending or refinancing, or read why applications get declined.
Ask us to map out your timeline.
Paritosh Wadhwani | Director and Principal Broker, APW Finance
Member of the Finance Brokers Association of Australia (FBAA). Arranging residential, commercial and specialist lending for Sydney clients across a panel of more than 50 lenders.
APW Finance Pty Ltd, 304/20a Lexington Drive, Bella Vista NSW 2153. Email: info@apwfinance.com. Phone: +61 447 959 546.
ACN 620 646 479 | ABN 79 620 646 479
This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Lending criteria, interest rates, duty thresholds and government schemes change, and every application is subject to lender approval. Consider whether this information suits your circumstances and seek independent advice before acting. Figures quoted are current at the date below and should be confirmed before you rely on them. Last reviewed: October 2026.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.