Preparing financially
The loan documents you'll sign after approval
The Key Facts Sheet, loan offer, mortgage document and guarantor paperwork — what each one actually is, and what to check before you sign.
- This is a different stage from pre-approval — these are documents the lender sends you after formal approval.
- The Key Facts Sheet is designed for comparing loans; the loan offer is the full binding contract.
- A guarantor should receive independent legal and financial advice before signing.
- Check the rate, every fee, and any break conditions against what you were originally quoted.
This comes after approval, not before
The pre-approval guide covers the documents you provide to apply. Once your loan is formally (unconditionally) approved, the lender sends you documents to review and sign — a different stage, with different documents, and worth reading carefully rather than signing quickly to keep settlement on track.
What to expect
Key Facts Sheet — a short, standardised summary of the loan's rate, fees, comparison rate and repayments, designed to be compared across lenders.
Loan offer / contract — the full terms: interest rate (and what it can change to), fees, repayment schedule, default and early-repayment provisions.
Mortgage document — registers the lender's security interest over the property; your conveyancer will typically manage the registration.
Direct debit authority — authorises loan repayments from your account.
Insurance requirements — confirmation that required building insurance is in place before settlement.
Guarantor documents (if applicable) — including a Certificate of Independent Legal and Financial Advice, so a guarantor obtains their own independent advice before signing.
What to actually check
Confirm the interest rate and what it reverts to after any fixed or introductory period, every fee listed against what you were quoted, the loan term, and any early-repayment or break-fee conditions — a rushed read at this stage is a common way small but costly surprises go unnoticed until much later.
The approval and loan offer itself is also commonly valid only for a limited period tied to settlement — often around six months in practice, though this varies by lender — and a settlement delayed past that window can mean your application needs to be reassessed. Sign and return your documents promptly, and tell your broker or lender early if you expect settlement to run late.
Practical checklist
Before you sign your loan documents
- Compare the Key Facts Sheet and loan offer against what you were originally quoted
- Confirm what the rate reverts to after any fixed or introductory period
- Check every fee listed, not just the interest rate
- Confirm how long this approval/offer stays valid, and what happens if settlement is delayed past that
- If a guarantor is involved, confirm they've received independent advice
Questions for a professional
- Does anything in this loan offer differ from what I was originally quoted?
- What are the exact conditions for early repayment or switching later?