How to navigate the Queensland home loan process

ByAndrew Mirams
How to navigate the Queensland home loan process

Buying a home can be one of the most exciting times in your life. But when it comes to the finance side of things? That’s where most people start to feel a little overwhelmed.

If you’re looking to buy property in Queensland, it helps to understand what the home loan process actually involves, from the moment you decide to buy right through to getting the keys.

Whether you’re a seasoned saver or just starting to look around the market, this no-fuss guide will help you confidently navigate the home loan process in the Sunshine State, one step at a time.

Understand what you can borrow – and afford

Before falling in love with a house, it’s crucial to get real about what you can borrow and what you can comfortably repay.

That’s where a mortgage broker comes in. Rather than guessing your budget based on online calculators, a broker will assess your:

  • Income
  • Living expenses
  • Current debts, like car loans, credit cards, Afterpay and more
  • Deposit amount
  • Credit score and overall financial health

They’ll then provide a borrowing range tailored to your circumstances and help you work out a monthly repayment figure you’re actually comfortable with – not just one the bank will approve on paper.

Borrowing capacity is not the same as affordability. Just because you can borrow a certain amount doesn’t mean you should. Leave room for rate changes and life events.

Know the home loan types available

There are different types of home loans available depending on your needs. Here’s a quick crash course:

  • Variable rate loan: The interest rate can go up or down with the market, offering flexibility and features like redraw and offset accounts.
  • Fixed rate loan: The interest rate stays the same for a set period, so your repayments won’t change.
  • Split loan: Part fixed, part variable – potentially the best of both worlds.
  • Interest-only loan: You only pay interest – not principal – for a set time. This can lower repayments in the short-term but doesn’t reduce your overall debt.

Your broker will help you compare all of these options and recommend one that aligns with your goals, whether that’s paying off your loan quickly, keeping repayments low or building equity.

Get pre-approval before you start house hunting

Pre-approval, also called conditional approval, is essentially the bank saying they’d be happy to lend you a certain amount based on what they know about you right now.

Getting this before you start making offers has a few big benefits. You’ll know what you can spend, agents and sellers might be inclined to take you more seriously, and you’re able to move quickly once you find the right home.

A pre-approval usually lasts for three to six months and involves providing key documents like payslips, bank statements, ID and details of your savings. A broker can handle this entire process for you – and help you update or extend it if needed.

But it’s important to know that a pre-approval is not necessarily a guarantee. It’s still subject to final checks once you’ve found a property.

Start the property search

Now the fun begins. With pre-approval in hand, you can start looking at properties in your budget. Here are a few things to keep in mind:

  • Location is key. Look at infrastructure, transport, schools and lifestyle factors.
  • Condition counts. A ‘bargain’ with major repairs, including some hidden nasties, could blow your budget.
  • Compare sold prices. Check recent sales in the area, not just list or guide prices.
  • Don’t skip building and pest inspections. This is especially important in Queensland, where termites and storm damage can be real issues.

Once you find the property you want, it’s time to make an offer either through private treaty or auction.

Understand Queensland’s unique buying process

In Queensland, things work a little differently than in other states. Here’s how a typical purchase works:

Private treaty sale

  1. You make a written offer.
  2. The seller accepts and both parties sign a contract of sale.
  3. You pay a deposit of usually five to 10 per cent
  4. The contract becomes conditional, usually subject to finance approval (commonly a 14-day period) and building and pest inspections (usually seven days).

If these conditions aren’t met, you can withdraw from the contract, but timing is tight, so having your broker on the ball is critical.

Once all conditions are met, the contract becomes unconditional, and you’re locked in. Settlement typically takes 30 days, at which point the property officially becomes yours.

Auctions

  • They used to be a rarity but now they’re increasingly popular
  • There’s no cooling off period.
  • There aren’t subject-to-finance clauses.
  • You must pay a deposit on the day, usually between five and 10 per cent.

If you’re buying at auction, make sure your loan is pre-approved and get your broker to review the auction terms with you ahead of time.

Finalise your home loan application

Once your offer is accepted and the contract is signed, it’s time to get formal approval from your lender. Your broker will:

  • Submit your full loan application
  • Order a bank valuation of the property
  • Liaise with your solicitor or conveyancer
  • Keep you updated through every stage

Once the bank is happy with the valuation and all checks are done, you’ll get unconditional approval. This means your finance is officially locked in.

Prepare for settlement

Settlement is the day the property legally changes hands and you get the keys. In the lead-up to settlement, your broker and legal team will coordinate:

  • Final loan documents, which you should sign ASAP
  • Transfer of funds
  • Stamp duty (more on that below)
  • Any final checks or inspections

What about stamp duty and grants?

In Queensland, first-home buyers may be eligible for stamp duty exemptions or discounts, depending on the property value. Right now, you won’t pay stamp duty on homes purchased for less than $500,000 and you get a partial concession for an amount above that.

There’s also the First Home Owner Grant, which currently offers $30,000 for new homes or builds. Your broker will help determine your eligibility and guide you through the application process.

Move in and start repayments

Once settlement is complete, congratulations! The place is yours. Your loan will kick in from this date, and repayments typically begin within the first month.

Make sure you:

  • Set up direct debits or payment reminders
  • Activate any loan features, like offsets or redraws
  • Keep in touch with your broker if anything changes

Your broker can also help you regularly review your loan to ensure it stays competitive, especially if interest rates move or your financial goals shift.

How to make the whole process smoother

  • Have your paperwork ready. The faster you provide documents, the faster things move.
  • Keep your finances stable. Avoid new debts or changing jobs mid-loan.
  • Ask questions. No question is silly. Your broker is there to guide you.
  • Lean on your team. Your broker, solicitor and agent are your support crew — use them.

It’s a maze, but…

The home loan process might seem confusing and complex, but with the right guide, it’s absolutely manageable.

A great mortgage broker doesn’t just find you a good interest rate. They explain the steps, translate the bank speak and help you to make confident and informed decisions at every stage of your buying journey.

If you’re thinking about purchasing in Queensland, whether it’s your first home or your next move, now is a great time to get your finance sorted. We’ll help you figure out where you stand and what’s possible.

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complimentary 60min session today!

The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.

Andrew Mirams
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