How home-loan pre-approval works

By Steph Pledger · Updated 2026-07-21

Pre-approval (sometimes called conditional approval) is a lender's indication of how much you may be able to borrow, based on a review of your situation, before you've found a property. It's one of the most useful early steps for any buyer.

What pre-approval is — and isn't

Pre-approval gives you a realistic budget and shows agents and sellers that you're a serious buyer. It is not a guarantee of final approval: that comes later, once you've chosen a property and the lender has assessed it and reconfirmed your circumstances.

What lenders look at

• Your income and how stable it is
• Your regular expenses and existing debts
• Your deposit and savings history
• Your credit history

How to get pre-approved

We start with a chat about your goals, help you gather and verify your documents, then compare suitable lenders and submit your pre-approval. Being organised early — payslips, bank statements, ID and a clear picture of your expenses — is the single biggest thing that helps.

How long does it last?

Pre-approvals are typically valid for a limited period (often around three months) and can usually be renewed. Your circumstances and lender policy can change in the meantime, which is why final approval is always subject to a full assessment.

Why it's worth doing

With pre-approval in hand, you can shop within a clear budget, move quickly when you find the right place, and negotiate with more confidence. If you'd like help getting organised, book a free chat with Steph.

This article is general information only and does not take into account your personal situation. It is not financial advice. Lending is subject to individual assessment, lender policy and approval.