Pre-Approval

Home Loan Pre-Approval

Know exactly how much you can borrow BEFORE you start house hunting. Get pre-approved in 24 hours, valid for 3-6 months.

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What is Pre-Approval?

Pre-approval (also called conditional approval or approval in principle) is when a lender assesses your financial situation and confirms how much they're willing to lend you - BEFORE you find a property.

Think of it as a "green light" from the bank

The lender checks your income, expenses, credit score, and employment. They tell you: "Yes, we'll lend you up to $X, subject to property valuation and final checks."

Pre-Approval vs Final Approval

Pre-Approval

  • Done BEFORE you find property
  • Takes 24-48 hours
  • Checks: income, expenses, credit
  • Valid for 3-6 months
  • Conditional on property valuation

Final Approval

  • Done AFTER you find property
  • Takes 1-2 weeks
  • Checks: property value, contracts
  • Valid until settlement
  • Unconditional - loan locked in

Why You NEED Pre-Approval

💰

Know Your Budget

Don't waste time looking at $800K properties if you can only borrow $600K. Pre-approval tells you your EXACT borrowing power.

🏆

Beat Other Buyers

Sellers and agents take you seriously. In competitive markets, pre-approval can be the difference between winning and losing the property.

Fast Settlement

With pre-approval done, you can move from offer to unconditional in 7-10 days instead of 4-6 weeks. Crucial for auctions and hot properties.

🛡️

Peace of Mind

Shop with confidence knowing the finance is sorted. No nasty surprises after you've fallen in love with a property.

📊

Better Negotiation

Pre-approval = you're a serious buyer. Sellers are more likely to accept offers and negotiate on price if they know you can actually get the loan.

🔍

Identify Issues Early

If there are problems with your application (credit issues, income verification), you find out NOW, not after you've signed a contract.

The Pre-Approval Process

1

Submit Your Details (5 minutes)

Fill out our quick assessment form. We need: income, expenses, employment, savings, property price range.

2

We Find Your Best Lenders (1 hour)

Our system compares 32+ lenders and identifies which ones will give you the best rate and highest approval chance for YOUR situation.

3

Gather Documents (1 day)

You provide supporting documents:

  • Payslips (last 2 months) or tax returns (if self-employed)
  • Bank statements (3-6 months)
  • ID (driver's license or passport)
  • Employment letter or contract
4

Submit to Lender (Same day)

We package your application professionally and submit to your chosen lender(s).

5

Get Pre-Approval (24-48 hours)

Approved! You receive a formal pre-approval letter stating your maximum borrowing amount. Now you can start house hunting with confidence.

Total time: 2-3 days from start to pre-approval letter in hand.

What You Need for Pre-Approval

📄 Documents Checklist

Employed

  • Last 2 payslips
  • 3-6 months bank statements
  • Employment letter
  • Photo ID

Self-Employed

  • Last 2 years tax returns
  • Last 2 years financials
  • 6 months bank statements
  • ABN registration

💼 Employment Requirements

  • Full-time/Part-time: Usually need 3-6 months in current job (or longer employment history)
  • Casual: Need 12+ months with same employer, regular hours
  • Contract: Need contract extending 6+ months beyond settlement
  • Self-employed: Need 2 full years of trading history
  • Probation: Some lenders okay, others want probation passed

💳 Credit Requirements

Lenders will check your credit file. Pre-approval is easier if you have:

  • Clean credit history (no defaults, bankruptcies)
  • Credit score above 600 (mainstream lenders)
  • No recent missed payments or dishonours
  • Not too many credit applications in last 6 months

Got bad credit? We work with specialist lenders. See bad credit options →

Pre-Approval FAQs

How long does pre-approval last?

Typically 3-6 months depending on the lender. Most are 90 days (3 months). After expiry, you'll need to update documents and resubmit. If your situation hasn't changed, it's usually quick.

Does pre-approval guarantee I'll get the loan?

Not 100%, but close (95%+). Pre-approval is conditional on: (1) property valuation coming in at or above purchase price, (2) no major changes to your finances, (3) property being acceptable security (no major defects). If you buy within budget and nothing changes, you'll get final approval.

Does pre-approval affect my credit score?

Yes, but minimally. The lender does a hard credit inquiry which may drop your score by 5-10 points temporarily. This recovers within 3-6 months. Don't apply with multiple lenders yourself - let a broker submit to the best one to avoid multiple inquiries.

Can I get pre-approval with less than 20% deposit?

Yes! Many borrowers get pre-approved with 5-10% deposit. You'll need to pay Lenders Mortgage Insurance (LMI) if under 20%. The First Home Guarantee scheme allows 5% deposit with no LMI for eligible first home buyers.

What if the property I buy is cheaper than my pre-approval?

No problem! If you're pre-approved for $700K but buy a $650K property, you just borrow less. The pre-approval is a MAXIMUM, not a requirement. Buying cheaper usually means faster final approval.

Should I get pre-approval before going to auctions?

ABSOLUTELY YES! Auctions are unconditional - if you win, you MUST settle. You need to be 100% certain you can get the loan. Most people get pre-approved for 10-20% above their auction budget to give themselves room.

Ready to Get Pre-Approved?

Start your home buying journey with confidence. Get pre-approved in 24 hours and know exactly how much you can borrow.

Get Pre-Approved Now →

✓ Free service ✓ 24-hour approval ✓ Compare 32+ lenders ✓ No obligation