Get pre-approved and shop with confidence
Know your borrowing power before choosing a car, caravan or home. Conditional pre-approval gives you a budget and negotiating power.
How it helps
Shopping without pre-approval is like not knowing your bank balance. It shows how much a lender will lend, subject to conditions like valuation.
With pre-approval you can negotiate firmly, move quickly and avoid dealer finance pressure on the day.
What’s included
- A clear borrowing limit before you shop
- Stronger negotiating position with sellers
- Faster settlement once you find the asset
- Less pressure to accept finance on the spot
- Time to compare options calmly
Pre-approval vs formal approval: what the difference means for you
Pre-approval means a lender will lend up to a set amount, subject to conditions like valuation and no change in circumstances. Formal approval follows once the asset is assessed, and can still be declined. Online estimates aren’t fully assessed pre-approvals.
Read the full explanation
Pre-approval, sometimes called conditional approval, means a lender has reviewed your income, expenses, debts and credit history and is prepared to lend up to a set amount, subject to conditions. Those conditions usually include a satisfactory valuation of the property, car or asset, final checks on your documents, and no change in your circumstances. It gives you a realistic budget and shows sellers and dealers that you are a serious buyer.
Formal approval, sometimes called unconditional approval, comes once you have chosen a specific property or asset and the lender has assessed it. For a home this typically follows a signed contract and valuation. Lenders can still decline at this stage if the valuation comes in low, your job changes or new debts appear. Some lenders also offer a quick online estimate, which is not the same as a fully assessed pre-approval, so ask your broker which type you have.
- Home buyers planning to bid at auction
- Car buyers avoiding dealer finance pressure
- Caravan, boat and equipment buyers with a budget
- First-time buyers wanting to know what’s realistic
Pros and watch-outs
Pros
- Set a realistic budget before shopping
- Move quickly when the right one comes up
- Negotiate with more confidence
- Find out early if your file needs fixing
Watch-outs
- !It’s conditional and can still be declined
- !It expires and may need renewing
- !A full assessment usually involves a credit enquiry
Costs and fees to compare
The interest rate is only part of the cost. Ask your broker to show these side by side.
Pre-approval application
Usually free, though some lenders charge application fees once the loan proceeds.
Valuation fees
Some lenders charge for valuation at formal approval. Ask if it’s included.
Establishment fees
Charged at loan setup, not pre-approval. Compare lenders before committing.
Deposit holding costs
For property, a deposit is usually paid on signing; plan cash flow before offering.
Credit enquiries
Full pre-approval usually means a credit enquiry; repeated applications can be noticed by lenders.
Tips to strengthen your application
- 1Avoid job changes or new debt before settlement.
- 2Check your expiry date; flag extensions with your broker early.
- 3Ask about conditions, such as property type or location limits.
- 4Leave a buffer below your limit for costs and surprises.
What happens next
Tell us your plans
What you are buying and your rough budget.
Send documents
ID, income and expenses.
Get pre-approved
Your broker secures a conditional approval.
Go shopping
Find the right one, then we finalise the loan.
Common questions
Is pre-approval a guarantee?
No. It is conditional approval. Final approval depends on the asset or property, a valuation where required, and no change in your circumstances.
Does pre-approval affect my credit score?
A pre-approval usually involves a credit check. Your broker targets the right lender first so you are not making multiple applications.
How long does it last?
Commonly 60 to 90 days for home loans, and it varies for car and asset finance. Your broker can renew it if needed.
Can I get pre-approved with more than one lender?
You can, but each full application usually records a credit enquiry on your file. A broker can usually identify a suitable lender first, which can reduce the need for multiple applications.
Do I need pre-approval to bid at an auction?
It isn't required by law, but auction purchases are usually unconditional, meaning you can't back out if finance falls through. Most buyers get pre-approval and ideally have the lender check the specific property before auction day.
What can cause a pre-approval to fall through?
Common reasons include a low valuation, a change in employment or income, new debts, or the property or asset not meeting the lender's policy. Keeping your finances stable and telling your broker about any changes early can help.
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Useful calculators
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Tell us what you are financing. It takes about two minutes, and comparing options won’t affect your credit score.