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Guide · Pre-approval

Pre-approval — the numbers before you call the agent.

A pre-approval gives you a borrowing ceiling and the confidence to bid. It doesn't guarantee the lender will approve the property you eventually find. Understanding the gap is the whole game.

Reviewed · Adam King — 30 years in finance, Sunshine Coast

What pre-approval actually is

Pre-approval (sometimes called conditional approval) is a written indication from a lender that — based on your income, deposit, debts and credit history — they're prepared to lend up to a stated amount, subject to a few outstanding conditions. The main outstanding condition is almost always 'a satisfactory valuation of the property you decide to buy'. That's the part most buyers underestimate. Think of pre-approval as the lender saying yes to you, not yet to the property. It approves you to search; the property still has to be approved separately once you've found it. Until there's an address on the contract, the lender hasn't valued the security, hasn't checked the title, hasn't confirmed the strata report. Those steps happen after you sign — so bid only to your pre-approved limit. Worth knowing: there's no real difference between a pre-approval arranged through a broker and one you get from a bank directly — it's the same lender making the same call. What does differ is the type of pre-approval from one lender to the next. Some run a full credit assessment by an underwriter; others issue a lighter, system-generated indication. Even an 'auction-ready' pre-approval still carries conditions — it is not a full, unconditional approval. The job is knowing which lender issues which, and how much weight each one actually carries.

Conditional vs. full approval

Both are called 'approval'. They're not the same document and they don't give you the same protection.

ConsiderationWith usDirect with a bank
What's been assessedYour income, deposit, debts and credit — fully underwritten by an assessor with some lenders; a lighter, system-generated check with othersConditional: the same as full. Full: plus the property valuation and any final conditions
Is the property included?Full approval includes a specific address and valuationPre-approval is property-agnostic — it travels with you across contracts
Suitable for auctionYes — most buyers bid on pre-approvalYes, but understand the remaining risk on valuation and contract conditions
How long it lastsTypically 90 days (some lenders 120). Can be re-issuedFull approval is locked to a specific contract until settlement

What pre-approval gives you (and what it doesn't)

Be clear-eyed about both.

  • Gives you: credibility when an agent is weighing multiple offers. A buyer with a pre-approval in hand reads as ready to proceed — and when two offers are close, that's often what tips a vendor your way. This is the benefit most buyers underrate.
  • Gives you: a real borrowing ceiling, written by an underwriter — not the back-of-an-envelope number an agent might suggest.
  • Gives you: the standing to bid at auction, where contracts are typically unconditional.
  • Doesn't give you: a guarantee on any specific property. The valuation can come in under the contract price.
  • Doesn't give you: protection if your income changes between pre-approval and settlement. New employer, new credit card, new car loan — any of these can change the answer.
  • Doesn't give you: forever. Most lenders' pre-approvals expire at 90 days. Re-validation usually just needs fresh payslips.

The pre-approval process

01

Discovery call

Twenty minutes. We map income, deposit, timing, the kind of property you're chasing, and which lenders are most likely to fit.

02

Document gather

Two payslips, three months of bank statements, ID, debt statements. Self-employed: two years of tax returns and BAS. Same day if you're organised.

03

Lender submission

We submit to the single best-fit lender — not five at once. Multiple enquiries hurt your file. The right submission is the one that gets through.

04

Conditional approval issued

Usually 2–5 business days. You receive a written letter you can show agents and use to bid.

Compliance note

Pre-approval doesn't *guarantee* the loan will settle.

Pre-approval is subject to the lender's ongoing satisfaction with your circumstances and a satisfactory valuation. Material changes to your income, employment, debts or the property itself can affect the final decision. We work the file to keep surprises out — but the approval letter is not a contract.

Documents to have ready

  • Two recent payslips (PAYG) or two years of tax returns + Notices of Assessment (self-employed)
  • Three months of statements on the account your salary is paid into
  • Statements on any existing loans, credit cards, BNPL accounts (even unused limits count)
  • Photo ID — driver's licence and Medicare card
  • Evidence of deposit — savings statements, or a gift letter if family is contributing. Some lenders ask to see a portion held or accumulated over a few months (a 'genuine savings' policy), but not all do, and it can often be met other ways — we'll match you to a lender whose policy fits how you've saved
  • If you have HECS/HELP, a recent payment summary showing the outstanding balance

Timing it with your property search

Getting pre-approval too early means it expires before you've found anything and you're re-validating monthly. Getting it too late means you're rushing the application while there's a contract on the table — and that's when mistakes happen. The sweet spot for most buyers is six to ten weeks before you expect to be bidding. Long enough to have it in hand for the property that pops up unexpectedly; short enough that it'll still be live when you actually transact.

Questions you might have

The honest answers.

Real numbers · honest answers

Your numbers, *before* you call the agent.

Twenty-minute discovery call. If we're a fit, you'll have a formal pre-approval letter inside the week.

Keep reading

General information only — not personal credit advice. Rates and figures shown are indicative and subject to confirmation against current lender pricing and policy.