Buying

What is home loan pre-approval?

Use this before making offers so documents, conditions, expiry dates, valuation risk and lender checks are understood.

Updated: 15 June 2026
Read time: 7 min read
Reviewed by: emoney broker team

Reviewed for general guidance. Reviewed by emoney broker team. Last updated 15 June 2026. Sources are listed below so borrowers can check the public references behind this general information before speaking with a broker.

Key checks before you decide

It can help you understand a likely purchase range.
It does not replace final loan approval.
It can expire or need updated information.
It may include conditions that need careful reading.
Identity details and contact information.
Income evidence for each borrower.

Full guide

Now read the full guide

Guide

Understand what pre-approval means

Pre-approval is a lender's conditional indication based on the details checked so far. It can help set a search range, but the lender still needs to assess the final property, documents, valuation, and any conditions before settlement.

It can help you understand a likely purchase range.
It does not replace final loan approval.
It can expire or need updated information.
It may include conditions that need careful reading.

Checklist

Prepare the borrower details first

A useful pre-approval conversation starts with the borrower position. Income, expenses, debts, deposit, savings history, credit limits, and property goals should be clear before a lender is asked to assess the file.

Identity details and contact information.
Income evidence for each borrower.
Savings, deposit source, gifts, grants, or scheme assumptions.
Credit-card limits, loans, HELP debt, and regular commitments.

Watch out

Remember the property still has to fit

A pre-approval usually happens before the exact property is known. The final property can still affect the lender decision through valuation, location, condition, zoning, title, building type, insurance, or contract terms.

Apartments, unusual titles, regional properties, or specialist properties may need extra checking.
The contract price and valuation may not always line up.
Lenders may need building insurance or other property evidence before settlement.
Auction purchases can carry extra risk because finance conditions may be limited.

Broker note

Keep expiry dates and changes in view

Pre-approvals often have an expiry period. They can also need review if interest rates, lender policy, income, debts, spending, employment, deposit funds, or the chosen property changes before you buy.

Check the pre-approval expiry date.
Tell the broker before changing jobs or taking on new debt.
Avoid spending deposit funds before settlement planning is checked.
Ask whether updated documents will be needed before making offers.

Next step

Want a broker to check this against your situation?

Answer a few questions so emoney can route your enquiry to the right broker conversation.Ask about pre-approval

Example

Use calculators before the application

Borrowing power and repayment calculators can help frame a sensible range before pre-approval. They should be used to prepare questions, not to replace lender assessment.

Estimate borrowing capacity with all debts and limits included.
Test repayments at your preferred purchase range.
Add estimated buying costs before deciding cash to complete.
Ask which assumptions need lender policy checking.

Broker note

Ask the offer-timing questions

Before making an offer or bidding, ask how the pre-approval interacts with the contract, valuation, finance clause, deposit timing, and settlement date. The answer can change the risk level of the next step.

What conditions are attached to the pre-approval?
What documents will need refreshing?
What property types should be checked before I bid?
How should I handle finance dates in the contract?

Calculator next step

Borrowing power calculator

Estimate a practical borrowing range before narrowing a property search or pre-approval conversation.

Best for: Early budget setting before a buyer gets attached to a price range.
What it calculates: A rough borrowing range from income, expenses, debts, dependants, loan purpose, term, and rate assumptions.

A broker still needs to test income treatment, credit limits, deposit, property type, documents, and lender policy.

Open Borrowing power

Sources used

officialASIC MoneySmart buying a house officialASIC MoneySmart choosing a home loan officialASIC MoneySmart using a mortgage broker officialASIC responsible lending obligations

General information only

This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.