3 Steps of the Mortgage Loan Process

Are you looking to find out more about the mortgage loan process? Are you wondering how to get a mortgage loan? No worries.

If you’ve never applied for a mortgage before, it can seem a little daunting. Let’s breakdown the process step-by-step, so you know exactly what to expect when it’s go-time.

Step 1: Preliminary preparation

There’s a lot that goes into preparing a home loan application. Before you even begin, you’ll need to answer questions like:

  • What type of loan are you eligible for?
  • Which lender offers the best loans for your unique circumstances?
  • How much have you saved and how much would you like to borrow?

It can be difficult to know where to start, and feeling overwhelmed is normal. That’s why so many buyers choose to work with mortgage brokers. Brokers offer a free service that connects you, the buyer, with a solution that meets your specific needs.

Getting Loan at the Bank | Cigno Loans

Working with a mortgage broker

If you contact a trusted mortgage broker, they can tell you how to get a mortgage loan that suits your situation and goals. Here’s how preparing for a loan with a broker works:

  • First, you’ll meet for an initial consultation, discuss your needs, and determine whether or not you’d like to work together.
  • Then, your broker will ask for your documentation, including things like your ID and payslips.
  • Next, you will be assessed. Potential issues will be addressed, and your borrowing capacity will be calculated. From this, the broker will recommend several products.
  • Finally, you select a product to submit an application for.

You don’t have to work with a broker – you can do direct to a lender, instead. Just be sure to do your research.

Step 2: Submitting an application

Now, it’s time to submit your home loan application – this is usually done through the lender’s portal. You’ll need to include a fair amount of paperwork and supporting documents and sign a few forms.

If you choose to work with a broker, they will usually submit your application on your behalf.

Step 3: The lender responds

Your application will be denied, given pre-approval (also known as conditional approval), or formally approved.

Pre-approval means you’ve met most of the lender’s policies. The next step is finding a property and securing a property valuation. If this goes smoothly, you’ll likely be awarded a home loan.

Pre-approval generally lasts about three months, so you have a bit of time to find that perfect property.

If you have been granted formal or unconditional approval, then the lender has confirmed that they will issue you a home loan. Now, you can totally relax.

You’ve got your home loan – what’s next?

So, there you have it: the mortgage loan process. You’ve secured a home loan, and now you’re ready to settle on your new property. If it all goes to plan, the rest is history.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat