Spring is a great time to hunt for a new home. As the weather warms up and everything starts blooming, many people begin their search, making spring the peak season for real estate in Australia.
With gardens looking their best, and buyers more willing to get out and about, over the past decade CoreLogic1 have seen a 20% rise in homes listed for sale this time of year, giving you more options to choose from.
Buying in spring means you could be moved into your new place by Christmas, but keep in mind that you won't be the only one looking.
CoreLogic notes that home sales jump by around 9%2 in spring, which can lead to fierce competition, especially in cities like Perth (where homes sell in about 10 days) and Adelaide (around 28 days)3.
To beat the competition and score your dream home, here's a simple strategy to help you get ahead.
Home loan pre-approval can give buyers a head start.
Instead of waiting until you find a place to buy, it is possible to have your home loan pre-approved before you start heading out to open home inspections.
This isn’t the same as getting full approval or in bank speak ‘unconditional approval’ —your lender can only give a definite thumbs-up once they know the property you’re interested in, which will act as security for your home loan. But getting pre-approved has its perks.
Pre-approval sets a clear borrowing limit, helping you stick to a budget and focus on homes within your price range. This means you won’t waste time looking at places that are out of your reach.
If you’re buying at auction, pre-approval lets you bid confidently and know exactly how high you can go, avoiding the risk of winning a bid on a property you can’t finance. Importantly, in a competitive spring market, having a pre-approved loan shows sellers you’re serious.
Make sure to let the selling agent know you’re pre-approved—it can make you a stronger candidate compared to other buyers who haven’t sorted their finances yet. Plus, it helps you skip adding conditions like ‘subject to finance’ to the sale contract, which can be a deal-breaker for sellers.
What to know about pre-approval.
Getting pre-approval is a bit like applying for a home loan after you’ve found the perfect place. You’ll need to show proof of your income, savings, regular expenses, and any other debts you’re managing.
Once you’ve got the green light for pre-approval, you can focus your property search more effectively. Just remember, pre-approval isn’t forever—typically, you’ll have 90 days to find the right home which for most buyers, is plenty of time.
While you’re searching, it’s smart to avoid major changes, like switching jobs or taking on extra debt (like getting a new credit card). Pre-approval is based on your current financial situation, and any drop in income could affect your chances of getting full approval later.
Talk to Defence Bank about home loan pre-approval.
Home buying is exciting but it can be stressful. Having your home loan pre-approved eliminates a large part of the stress. With your funding sorted, you’re free to focus on finding the home that’s right for you
For a chat about getting home loan pre-approval, you can make a virtual home loan appointment at a time that suits you.
You can also talk to our team by calling our Contact Centre on 1800 033 139 or visit your local branch.
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.
1. https://www.corelogic.com.au/news-research/news/2024/whats-in-store-for-the-spring-selling-season
2. https://www.corelogic.com.au/news-research/news/2024/whats-in-store-for-the-spring-selling-season
3. https://www.corelogic.com.au/news-research/news/2024/whats-in-store-for-the-spring-selling-season
