Your guide to Home loan pre-approvals

What's inside

This guide explains what pre-approvals mean for Australian borrowers and includes:

Types of pre-approvals – fully assessed (documents verified) vs auto-assessed (system-generated, less reliable)
Why some lenders don’t offer them – low conversion rates and added processing time
Benefits – know your budget, stronger bargaining power, faster application process, potential rate lock, peace of mind
Drawbacks – credit enquiries, expiry dates, pricing changes, unreliable auto-approvals, and lenders that don’t offer them
Other considerations – LVR-based pricing, property acceptability, borrowing amount thresholds, and variable LMI costs

This guide helps you understand when pre-approvals are useful, the risks to be aware of, and why working with a broker can make the process smoother and more strategic.

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IMPORTANT NOTE: All content is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. Any recommendations made about a financial product are general advice only and has not taken into account your particular needs and circumstances. You should consider the Product Disclosure Statement to determine if the product is suitable for you before you decide to purchase it.