Pre-approval is a lender’s conditional indication of how much they may be willing to lend you before you find a property. It’s one of the most useful steps to take before you start attending open homes or bidding at auctions.
You'll know what you can spend, so you only look at properties you can actually buy.
Auction sales generally have no cooling-off period, so once the hammer falls you're committed. Pre-approval means you know your limit before the bidding starts.
Showing an agent you're pre-approved signals you're ready to buy, which can help when you make an offer.
If something in your credit file or paperwork needs sorting, you'll find out before it's urgent.
Pre-approval isn't a guarantee. Once you've found a property, the lender still needs to value it and confirm your details before giving formal approval.
It also has an expiry date, usually somewhere between three and six months depending on the lender. If yours runs out before you buy, we can renew it.
If your situation changes, like a new job or a new car loan, tell us straight away, because it can affect your approval.
1
We talk about your income, savings, debts and what you want to buy.
2
ID, payslips or tax returns, and bank statements. We'll send a checklist.
3
We compare lenders before applying, so you only have one enquiry on your credit file.
4
We lodge the application and let you know your approved amount and its conditions.
It depends on the lender and how quickly your documents come together. We'll give you a realistic timeframe for the lender we recommend.
Applying adds an enquiry to your credit file. That's why we compare lenders first and apply with the one that suits you best, rather than applying with several.
Broadly, yes. Lenders use different names for the same step: a conditional approval before you've found a property.
Send us the contract. We arrange the valuation and work with the lender towards formal approval and then settlement.
This information is general in nature and doesn't take into account your objectives, financial situation or needs. Pre-approval is not a guarantee of finance. All loans are subject to lender approval, and terms, conditions, fees and charges apply.
Book a time to start your pre-approval. It costs nothing to talk.
