When Should You Start the Home Loan Process?

This article first appeared on awesomelendingsolutions.com.au.

Many people wait until they've found a property before they think about their home loan. That's often too late. The best time to start the home loan process is much earlier than most people expect. Here's a timeline to help you get ready.

Why start early?

Starting early helps you:

• Know your real budget before you fall in love with a property
• Fix problems with your credit or finances
• Build a stronger deposit and savings history
• Find out which government schemes you qualify for
• Act quickly when you find the right home

12 months or more before buying

This is the ideal time to have your first chat with a broker. At this stage you can:

• Set a savings goal – based on your target price and scheme eligibility
• Check your credit report – and fix any errors
• Plan for genuine savings – many lenders want to see savings built over at least three months
• Consider the First Home Super Saver Scheme – it works best if you start contributing well before you buy
• Reduce debts – pay down credit cards and avoid new loans

6 to 12 months before buying

• Keep your job stable – lenders prefer at least a few months in your current role, and some require you to be past probation
• Track your spending – lenders look at your bank statements
• Cancel unused subscriptions and reduce discretionary spending
• Research suburbs – and check scheme price caps
• Talk about family help – if a guarantor or gift is part of your plan

3 to 6 months before buying

• Gather documents – payslips, bank statements, ID, debt statements
• Get pre-approval – ideally fully assessed
• Line up your team – conveyancer, building inspector, possibly a buyer's agent
• Attend open homes and auctions to get a feel for prices

When you find a property

• Tell your broker before you make an offer or bid
• Get the contract reviewed by your conveyancer
• Organise inspections
• Check the property suits your lender (some lenders have rules on small units or certain locations)

After exchange

• Formal approval – the lender values the property
• Sign loan documents
• Arrange insurance
• Prepare for settlement

Refinancing timeline

If you're refinancing, start:

• 2 to 3 months before your fixed rate ends
• Any time you notice your rate is higher than market rates
• At least once a year for a review

Starting early in 2026

2026 has shown how quickly things can change. The cash rate rose four times, lifting assessment rates and reducing borrowing power for many buyers. The 5% Deposit Scheme expanded, and APRA introduced a debt-to-income limit. Talking to a broker early means you can plan around these changes instead of being surprised by them.

An example

Lily wants to buy her first home in about a year. She speaks to a broker now.

• Her broker shows her she'll qualify for the 5% Deposit Scheme.
• She learns that her $8,000 credit card limit is reducing her borrowing power, so she lowers it to $2,000.
• She starts salary sacrificing into super for the First Home Super Saver Scheme.
• Twelve months later, she's pre-approved, organised and ready to buy.

Signs you're ready to start

• You're thinking about buying in the next one to two years
• You're unsure how much you can borrow
• You want to know which schemes you qualify for
• You have debts or credit issues to sort out
• Your fixed rate is ending soon

What does an early chat cost?

Usually nothing. Most brokers are happy to have an initial conversation at no cost, even if you're a year or more away from buying. It's a low-risk way to get a clear plan and avoid surprises later.

A simple countdown checklist

• 12 months out: first broker chat, credit check, savings plan
• 6 months out: stable job, tracked spending, suburb research
• 3 months out: documents ready, pre-approval, team lined up
• Ready to buy: inspections, contract review, offer or bid

Following this countdown means you'll be ready to move when the right home comes along, rather than scrambling to catch up.

Frequently asked questions

Is it too early to talk to a broker if I'm two years away?

No. It's a great time to plan your savings and finances.

Will talking to a broker affect my credit score?

No. A conversation doesn't involve a credit check. A check only happens when you apply.

How long does pre-approval last?

Usually three to six months.

Should I get pre-approval before I start looking?

Yes, ideally before you start looking seriously, so you know your budget.

Talk to Awesome Lending Solutions

Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.