The big four banks have significantly reduced home loan approval times, with the major lenders claiming turnaround times of two days or less for straightforward loans.
The increased pace of decision-making is allowing more first-home owners to enter the market and contrasts with bottlenecks in the approval process following the Hayne royal commission.
The banks say their processes have been streamlined and they can make decisions much faster. ANZ, Commonwealth Bank, National Australia Bank and Westpac have revealed that their turnaround times for home loan approvals had dropped to as low as a day for an existing customer earning regular income.
National Australia Bank CEO Ross McEwan says NAB can approve a “vanilla” home loan in as little as 24 hours.
“For a simple home loan through one of our branches, 50% are approved in less than a day and the other 50% are less than five days,” McEwan says.