A pre‑approval is a conditional OK: “If your situation and the property match our policy, we expect to lend up to $XXX,XX,XXX.” It is not unconditional approval, and can still fall over if conditions change.
What it usually checks
- Income, liabilities and living expenses (HEM benchmark + your evidence)
- Credit report and conduct of your existing accounts
- ID/AML, deposit source, and a preliminary look at LVR
7 tripwires to avoid
- Changing jobs (especially to probation or casual) before settlement.
- New credit (cards, BNPL, car loans) after pre‑approval is issued.
- Large unexplained deposits in your statements.
- Surprise tax debt or late BAS when self‑employed.
- Contract changes (price, longer settlement) that push LVR or policy limits.
- Property issues (unapproved works, title encumbrances, adverse valuations).
- Expiry — most pre‑approvals lapse in 60–90 days if not refreshed.
How to make it robust
- Go through a broker who fits your income to lender policy (overtime, commissions, rent, add‑backs).
- Keep your accounts squeaky clean until settlement day.
- Ask for the pathway from conditional to unconditional, and the documents you’ll need.
Ready to get pre‑approved? Request a free First‑Home Strategy Call.
We’ll package and submit a strong file, then guide you through to unconditional approval.