Pre-approval (also called conditional approval) is a lender’s written indication that they’ll lend you a certain amount, subject to finding the property. It turns you from a browser into a buyer, agents take you seriously, and you can bid or offer with confidence.
What pre-approval actually gives you
A pre-approval confirms the lender has assessed your income, expenses, deposit and credit file, and is prepared to lend up to a stated limit. It is not a guarantee, final approval still depends on the property itself (valuation, type, location) and your circumstances not changing.
How long does it take?
With documents ready, some lenders issue pre-approval within 24–48 hours; others take one to two weeks. The difference is largely about whether a credit assessor reviews your file or it’s system-assessed, a broker knows which queue you’re joining before you apply.
How long does it last?
Typically 90 days, often extendable to six months with updated payslips. If rates or your circumstances change materially, the lender can revise the amount, another reason not to max out a pre-approval to the last dollar.
Common mistakes to avoid
- Multiple applications: every formal pre-approval can leave a credit enquiry. Several in a short window can hurt your file. Compare first, apply once.
- Changing jobs mid-purchase: probation periods complicate final approval.
- New debts: a car loan after pre-approval can sink the final numbers.
- Assuming it’s transferable: pre-approval is lender-specific; switching lenders means re-assessing.
Estimate your borrowing power first, so your pre-approval application targets the right lender at the right amount.
Open the borrowing capacity calculator →The broker shortcut
Nathan pre-checks your file against lender policy before anything is lodged, so your one application goes to the lender most likely to approve the amount you actually need. Book a free consultation to get pre-approval moving.