Home Loans Pre-approvals

How Home Loan Pre-approval Works

A home loan pre-approval is a conditional, indicative assessment from a lender based on the information available at that time. Different lenders may assess the same applicant differently.

Information a lender may request

A lender may request identification, income and employment information, or financial information for a self-employed applicant, as well as details of expenses, existing debts and commitments, assets, savings and the intended purchase. Exact requirements vary by lender and circumstances.

Conditions and reassessment

Pre-approval may include conditions and is time-limited. The lender may need to reassess the application if the pre-approval expires or the applicant circumstances, debts, income or intended purchase change.

Property checks and final approval

Pre-approval is not final home loan approval. Final approval may still depend on the selected property, valuation, acceptable security, lender requirements, updated applicant information and completion of the lender assessment.

A typical pre-approval path

1. Discuss the planned purchase and indicative borrowing position with a broker.
2. Prepare the requested information and compare relevant lender options.
3. The lender assesses the request and may issue a conditional pre-approval.
4. After a property is selected, the lender completes its property, security and final assessment checks.
5. If the lender gives final approval, the required documents and settlement steps can proceed.

Buying your first property? See First Home Buyer Loans. Already own a property and planning the next purchase? See Next Home Loan. For broader residential finance information, return to the Home Loans hub.