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Wondering what the Cairns home loan process is?
Generally, the most beneficial way to gain a clear understanding of home loans, how the process works and how to select the most appropriate one for you, is to speak directly with your local Cairns loans specialist.
A face to face or telephone conversation with a JGM Lending and Finance specialist will provide an opportunity to define a clear picture of your current situation, your loan requirements and your future financial expectations.
Our meetings provide the perfect opportunity for you to ask any questions about our services, the types of loans available, the application and approval processes, and what happens next moving forwards.
Can’t make it into our city office? No problem, we can arrange to meet at a location that best suits you. Whether it be your home, a café or other location, we’ll be there.
How does the loan process work?
Arrange a pre-approval
A pre-approved home loan will give you stronger buying power. You’ll know exactly what your financial limits are, you’ll also be in a position to better compete with other home buyers who are yet to secure any loan approval.
Finding a property suddenly becomes easier as you’ll be able to rule out any homes that are outside your pre-approval range. No more wasted open inspections.
Generally, you’ll be viewed more favourably by the selling agent if you have a pre-approved home loan as it shows you are a serious contender with the ability to act quickly on any serious offer.
Property Selection
Research, research and more research. If you are planning on living in your newly purchased home, ensure that you are happy with the suburb, the current home prices in the area, what features are in the area such as schools, transport, shops etc and is there potential for capital growth.
Contract of Sale
Once an offer has been accepted, you’ll need to sign a contract of sale. This clarifies the price offered and lays out any terms and conditions attached to the sale. You’ll usually need to include a building inspection, a pest inspection and of course, a subject to lender approval clause.
Contract to settlement
The general timeline in Australia from signing a contract of sale to settlement is 6 weeks. During this time, a property valuation will need to be undertaken by your home loan provider to ensure their risk mitigation processes are followed. Should the property be valued below the contracted sale price, the final loan approval most likely will not proceed.
Find a Conveyancer
To act on your behalf, you’ll need to obtain the services of a solicitor or a conveyancer to carry out some ‘behind the scenes’ processes. Building approvals, subsequent inspections, land use requirements or limitations, and tax and rates payments are all critical tasks performed by your experienced Cairns conveyancer or solicitor.
On the day of settlement, your conveyancer or solicitor will also ensure that all monies and fees such as stamp duty have been paid prior to taking lawful possession of your new home.
Payment of Deposit
There are generally two deposits required, one after signing the Contract of Sale and the other a deposit bond during the settlement period. Be mindful that these deposits will not be accessible via any home equity credit and will need to be provided from other funds.
Cooling off period
Cooling off periods on the purchase of residential properties in Cairns, Queensland are valid for 5 business days. This may not apply to purchases at auction. The duration commences on the day the buyer receives a copy of the contract signed by all parties.
Unconditional contracts
Buyers should always take care if considering unconditional contracts without absolute certainty that the finances are readily available. Seeking legal advice is always recommended when purchasing a property or a significant investment.
JGM – Your Cairns Home Loan Team
Need insurance for your new home loan? We can walk you through your options.