Key takeaways
- Pre-approval is a lender’s conditional “yes” to a loan amount, before you’ve found a property.
- It typically lasts around 90 days and can usually be renewed.
- It is conditional — final approval still depends on the property and your circumstances not changing.
- Multiple formal applications in a short window can hurt your credit score; one well-targeted application won’t.
Buying without pre-approval means guessing your budget, hesitating at auctions and scrambling on finance after you’ve found the one. Buying with it means knowing your ceiling and moving fast. For most buyers it’s the single most useful piece of preparation there is.
What pre-approval actually is
Pre-approval (also called conditional approval) is a lender assessing your income, debts, expenses and deposit, and confirming — in writing — the amount it’s prepared to lend you, subject to conditions. The main condition is the property itself: the lender hasn’t seen it yet, so final approval waits until it can value what you’re buying.
Why it’s worth getting
- A real budget. You search in the right price range from day one.
- Credibility. Agents and sellers take pre-approved buyers seriously, especially in competitive markets.
- Speed. When you find the right home, most of the finance work is already done.
- Auction confidence. Auction purchases are unconditional — bidding without pre-approval is a genuine financial risk.
How the process works
You’ll provide identification, proof of income (payslips, or business financials if self-employed), statements for debts and savings, and details of your expenses. A broker packages this once and puts it to the lender whose policy fits you best — approval typically comes back within days, sometimes faster.
Applying formally to several lenders “just to see” leaves multiple credit enquiries on your file in quick succession, which lenders read poorly. The better order: compare the whole market first, then apply once, to the right lender. That’s exactly what a broker is for.
How long it lasts — and what it doesn’t promise
Most pre-approvals hold for around 90 days and can be refreshed if your search runs longer. But conditional means conditional: final approval can still be declined if the property doesn’t value up or suits the lender poorly (some are cautious on high-density apartments, for instance), or if your job, debts or the lender’s own policy change in the meantime. The practical advice: keep your finances steady between pre-approval and settlement, and run any property you’re serious about past your broker before you commit.
When to get pre-approved
Once you’re genuinely ready to buy within roughly the next three months. Earlier than that, a borrowing-power assessment (no credit check, no application) gives you the same clarity without starting the clock.
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Book your free game plan callFrequently asked questions
Does pre-approval affect my credit score?
A formal pre-approval application usually involves a credit enquiry, which appears on your file. One enquiry is normal and minor; several in quick succession is what lenders dislike. An initial conversation and market comparison with us involves no credit check at all.
Is pre-approval a guarantee I’ll get the loan?
No — it’s conditional. Final approval depends mainly on the lender valuing the specific property and your circumstances staying as assessed. Keeping your finances steady and checking unusual properties with your broker first keeps the risk low.
How long does pre-approval take to get?
With documents ready and the right lender chosen, often two to five business days — sometimes within 24 hours. Complex income (self-employed, multiple sources) can take longer, which is worth building into your timeline.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies and rates change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.