Pre-Approval — What It Means
and How to Get It
Why pre-approval gives you confidence when looking and makes you a stronger buyer.
What is home loan pre-approval? Pre-approval (also called conditional approval or approval in principle) means a lender has assessed your finances and indicated they would likely lend you up to a certain amount, subject to finding a suitable property. It is not a guarantee of final approval, but it gives you confidence about your budget and shows sellers you are a serious buyer.
Why pre-approval matters
Without pre-approval, you are searching blind. You might fall in love with a property you cannot afford, or miss opportunities because you were not ready to move. Pre-approval puts a number on what you can borrow, narrows your search to properties within your budget, and signals to real estate agents and sellers that you are a qualified buyer — not a tyre-kicker.
How to get pre-approved
The process is straightforward. You provide your income documents (payslips, tax returns for self-employed), identification, details of your existing debts, and a summary of your monthly expenses. A broker submits this to a lender, who assesses your borrowing capacity and issues a pre-approval letter. The whole process typically takes 1 to 5 business days.
Pre-approval is usually valid for 90 days, though some lenders offer 60 or 180 days. If it expires before you find a property, it can usually be renewed with updated documents.
Read our complete home loans guide for the full process from pre-approval through to settlement. First home buyers should also read our Perth first home buyer guide.
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