🏡 If I’ve Just Signed a Contract to Buy My First Home, Will That Impact My Car Loan Chances?
Buying your first home is a huge step — but what if you also need to buy a car before your property settles?
Many Australians ask: Will signing a contract to buy a house affect my car finance application?
The answer is reassuring — you can still get car finance. In most cases, signing a home contract doesn’t stop you from being approved; lenders simply look at your financial position and how close you are to settlement.
🏠 How Lenders View Pending Home Purchases
Once you’ve signed a contract to buy property, lenders already see you as a home buyer — even if the sale hasn’t settled yet.
That means you can often access home-buyer car loan rates, which are typically lower than standard consumer rates.
When you apply for car finance, lenders will simply look at:
- Your current income,
- Your new mortgage commitments, and
- Whether you can comfortably service both loans.
If your debt-to-income ratio still sits within their guidelines, they’ll happily approve your car loan — often with no delay.
💡 Why You Don’t Have to Wait Until Settlement
Car finance lenders understand that property transactions take time.
You don’t have to wait until your home settles to apply for car finance because:
- You already have a legally binding contract of sale,
- Your intent to own property shows long-term financial stability, and
- You can verify ownership later through a rates notice or title search once the property settles.
Some applicants even get pre-approved car finance so their car is ready at the same time as their house keys.
🧾 What Proof You’ll Need (Later)
You won’t need to provide property documents upfront.
Before your car loan settles, your lender will simply:
- Request a council rates notice, or
- Run a land title search to confirm ownership.
Until then, your car finance can remain conditionally approved. This means you can line up both transactions smoothly.
🚗 Why First Home Buyers Often Qualify Easily
Even if your mortgage hasn’t settled, your property purchase shows:
- Financial discipline (you’ve saved a deposit),
- Ability to meet lender requirements, and
- Long-term commitment to repayments.
That positions you as a low-risk borrower — helping you access low rate car loans with minimal fuss.
💬 Final Thoughts
Signing a contract on your first home won’t hold up your car finance.
As long as your budget supports both repayments, you can apply confidently and even have both loans approved around the same time.
At Finance The Ride, we help first-time buyers navigate both milestones seamlessly — matching you with lenders who understand real-world timing.
✅ Check Your Eligibility in 20 Seconds
You can apply online today — no documents required upfront.
Check your eligibility here or learn more about low-rate car loans for new home buyers.
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
