What it means, how long it lasts, and what happens next. Getting pre-approved is an exciting step, but there are a few things worth understanding before you start making offers.
A mortgage pre-approval (sometimes called conditional approval) means a bank has reviewed your financial situation and indicated how much it may be prepared to lend, provided you meet its conditions.
It helps you understand your potential borrowing budget, but it isn't final approval for a particular house. The bank has assessed you as a borrower; it still needs to assess the property you're buying.
Your maximum borrowing amount isn't necessarily the amount you should spend. It's worth making sure the repayments and ongoing homeownership costs work for your budget.
This is completely normal. Some conditions relate to the property you eventually buy, while others relate to your own finances.
Your actual conditions will be listed in your approval letter. Not every buyer will need every item above.
Many lenders issue pre-approvals for around 90 days, giving you time to find a suitable property.
Some approvals, including certain low-deposit approvals, may have a shorter period. Your letter will confirm the actual expiry date.
We can often ask the bank to extend or renew your pre-approval. We'll need to confirm whether anything has changed with your financial situation. The bank may request updated documents even if nothing has changed.
If your income, employment, debts, expenses or deposit have changed, we may need to collect new information and ask the bank to reassess your application. Extensions aren't automatic, and lending criteria can also change.
Once you’ve had an offer accepted, the bank will review the property to make sure it’s happy to accept it as security for your mortgage.
We’ll also work through the conditions on your pre-approval. The bank may add further conditions after reviewing the property.
Once all the bank’s conditions have been met, you’ll receive unconditional finance approval. Your lawyer will need confirmation of this before they can confirm your finance condition has been satisfied under the sale and purchase agreement.
Your pre-approval is based on the information the bank assessed at the time. If your circumstances change while you're house hunting, let us know early.
These changes can affect how much a lender is prepared to lend. It's much easier to work through them before you've committed to buying a property.
Even if you're not sure whether something matters, it's worth checking with us.
Pre-approval letters can look a little overwhelming, especially when they contain a list of conditions. We'll run through the approval with you, explain what each condition means, and help you work out what needs to happen and when.
We'll also help you keep track of the expiry date, request extensions where appropriate, update the bank if your circumstances change, and manage the finance process when you find a property.
That way, you can focus on finding the right home while knowing what still needs to be sorted.
You might also find these helpful: How to Make an Offer · The Mortgage Process · Deposit Options
Whether you've just been approved, found a property or need an extension, we're here to help you understand the next step.
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General information only. Personalised advice depends on your circumstances.
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