Pre-approval (conditional approval)
A pre-approval is a lender's written indication of how much it would lend you, subject to conditions such as a satisfactory valuation and unchanged circumstances; it is not a guarantee of finance.
Pre-approval, explained.
Pre-approvals are typically valid for around three months and are useful for setting a bidding limit and showing agents you are ready. Some are system-assessed only and carry less weight than one where a credit assessor has reviewed the documents.
The conditions matter: a valuation shortfall, a change in income, a new debt or a property type the lender does not accept can all unwind a pre-approval. Buying at auction is unconditional, so the pre-approval and the property both need to be checked before bidding.
Tools that use this term.
Longer reads from the archive.
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A finance review starts with a conversation and a written position from Dayan Kasturiratna, who provides the credit assistance on every file. No credit check to start.
The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
