Conditional approval in 24–72 hours with the right paperwork. Valid 90 days. Here’s exactly what lenders want to see and how the process runs.
Pre-approval (also called conditional approval) tells you roughly how much a lender will lend you, based on documented income, expenses and credit history. Timeline: 24–72 hours through a specialist broker, 5–10 business days direct with a bank. Valid for 60–90 days. Essential before serious house-hunting — agents treat pre-approved buyers as the real ones.
Pre-approval is a conditional lender commitment — they’ve looked at your documents and said “yes, we’ll lend you $X”, subject to:
Pre-approval is not a guarantee. It’s also not an offer to you — you can walk away until you sign a loan contract. But 90% of pre-approvals do convert to formal approval as long as circumstances don’t change.
Before applying anywhere, use a borrowing capacity calculator for a realistic estimate. Major banks currently assess you at your rate + 3% APRA buffer, so capacity is significantly lower than your actual repayment ability might suggest.
PAYG: 2 recent payslips + 3 months bank statements + photo ID + statements for existing debts (credit cards, personal loans, HECS/HELP, car loans). Self-employed: add 2 years tax returns + 2 years company/trust financials + BAS (last 4 quarters) + ATO notice of assessment.
Lender policies vary enormously. One lender might love your casual nursing income; another might discount it 20%. A home loan specialist knows which lender matches your profile this month — most consumers don’t see these policy differences advertised.
Through a broker: often same-day lodgement with a 24–72 hour decision. Direct to bank: typically 3–10 business days because of queue times. You’ll get a written conditional approval letter stating the maximum loan amount.
Present the pre-approval letter (or a copy) to selling agents. You’ll be treated as a serious buyer. Once you have a signed contract, your lender will order the valuation and move to formal (unconditional) approval within 2–5 business days.
Everything above, plus:
See our self-employed home loan guide for policy specifics.
Typically 24–72 hours if you have all documents ready and apply through a specialist broker. Applying directly to a bank can take 5–10 business days due to queue times.
Most Australian lenders make pre-approval valid for 90 days. Some (CBA, Westpac) offer 60 days. You can extend by re-submitting recent payslips — no full reassessment usually needed if your situation hasn’t materially changed.
Yes — slightly. A formal pre-approval creates a credit enquiry on your file. One enquiry has negligible impact; three or more in 3 months can drop your score by 10–30 points. Avoid applying to multiple lenders simultaneously.
PAYG: 2 recent payslips, 3 months bank statements, photo ID, statements for all existing debts. Self-employed: add 2 years tax returns, 2 years company/trust financials if applicable, BAS statements (last 4 quarters).
No. Pre-approval is conditional — still subject to property valuation, any changes to your income/employment, final credit check, and lender policy at formal approval. Most pre-approvals convert to formal approval, but not all.
Yes, but with caution — pre-approval doesn’t cover the specific property. If the valuation comes in low after auction (where there’s no cooling-off period), you may need to cover the gap yourself. Most specialists recommend also ordering an up-front valuation for auction purchases.
Free referral to a home loan specialist who can lodge pre-approval in 24–72 hours. No cost to you — our service is free to you.
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