Getting conditional approval

If you’re actively thinking about buying a home, it can be useful to check how much you’re eligible to borrow from a bank or lender. This process is called home loan pre-approval or conditional approval.

The process of getting pre-approval involves applying with a lender who will check your finances and assess whether you’ll be able to repay a loan. 

If a lender approves your application, you’ll be given pre-approval to borrow up to a certain amount. This will last for 3 to 6 months.

Going through the pre-approval process is not a compulsory part of applying for a home loan but it can be beneficial in a number of ways, including: 

  • becoming familiar with loan applications
  • understanding how much you can afford to spend on a home
  • demonstrating to sellers you’re ready to proceed with a purchase

Getting pre-approval is not a guarantee that you will be approved for a home loan.

Once you find a home you want to buy, you’ll need to get full or unconditional approval from a lender. This requires a more detailed application including a valuation of the property to check you haven't offered too much for it.