Pre-approval can make property shopping more focused, but understanding its conditions is essential.
What lenders assess
Lenders generally consider income, employment, expenses, debts, credit conduct, deposit, loan term and an interest-rate buffer.
- Identity and residency status
- Income and employment evidence
- Living expenses and dependants
- Existing debts and credit limits
- Deposit and source of funds
Conditional is not unconditional
Pre-approval is usually based on assumptions and supplied information. Final approval may still require a suitable property valuation, updated documents, satisfactory credit checks and no material change in circumstances.
Avoid changing your position
New credit cards, car loans, buy-now-pay-later use, job changes or reduced savings can affect the final assessment. Speak to your broker before making a major financial change during the approval period.
When pre-approval expires
Pre-approvals commonly have a validity period. If you have not purchased, updated evidence and a new assessment may be required.
Common questions
Can I bid at auction with pre-approval?+
Auction contracts are typically unconditional. Obtain legal advice and understand that pre-approval is not a guarantee of final finance.
How long does pre-approval take?+
Timeframes vary by lender, complexity, document quality and demand.
This guide does not consider your objectives, financial situation or needs. Lending policies, government programs and thresholds can change. Obtain current credit, legal, tax or financial advice as appropriate.