Key takeaways
- Pre-approval is conditional. It is not a guarantee of final approval and can change or lapse.
- ASIC's MoneySmart says pre-approval lasts for 3 to 6 months and does not commit you to a loan.
- Complete, organised documents help the process run smoothly, but no timeframe can be promised.
- Final approval still depends on the property, the valuation and the lender's last checks.
What is home loan pre approval?
Pre-approval (also called pre home loan approval) is a lender's conditional assessment of what you may be able to borrow, based on the evidence of your income, expenses, debts and savings that you provide. According to ASIC's MoneySmart, pre-approval shows you are eligible to apply for a loan up to a certain amount, does not commit you to a loan, and lets you set an affordable price range.
What it is not: a promise to lend. The lender has not yet seen the property, and your circumstances or lending policy can change. Treat the figure as a guide to your search, not a guaranteed outcome.
Who this is for
- First home buyers in Sydney who want a realistic price range before attending inspections and auctions
- Upgraders and investors who need to know their position before making an offer
- Self-employed borrowers who expect to need extra documents and want time to prepare them
- Buyers who want a pre-approval letter for a home loan to show an agent, understanding its limits
The process for pre approval for a home loan
Here is the process for pre approval for home loan applications with us, step by step.
Talk through your goals
We ask about your income, commitments, deposit and the type of property you are considering.
Gather your documents
We give you a checklist so you can supply what the lender is likely to ask for in one go.
Match a lender and lodge
Policies vary, so your broker matches you to a suitable lender and submits the pre-approval request.
Review the outcome
If a pre-approval is issued, we explain the amount, the conditions and when it may lapse, so you know your range.
Documents checklist for a pre approval home loan
Lenders vary in what they require, so treat this as a general guide and confirm the list with your lender or broker.
| Item | What is commonly requested |
|---|---|
| Identification | Driver licence, passport or similar, so the lender can verify who you are |
| Income evidence | Recent payslips and an employment letter for employees; tax returns, notices of assessment and business financials may be requested if you are self-employed |
| Bank statements | Recent statements showing savings, deposit history and day-to-day spending |
| Debts and commitments | Details of credit cards, personal loans, car finance, HECS-HELP and buy-now-pay-later accounts |
| Living expenses | A realistic picture of your regular spending, as lenders assess expenses closely |
| Deposit and costs | Evidence of savings or gift funds, plus an allowance for buying costs |
Want a rough sense of your numbers first? Our borrowing power calculator and Sydney home loan calculators work as a simple pre approval home loan calculator. They give estimates only and are not a lender's assessment. See also our borrowing power guide.
How long does pre approval take, and how long does it last?
There is no standard timeframe for how long pre approval takes. It depends on the lender, how complete your documents are and whether follow-up questions come up, so we cannot promise a turnaround.
On how long a pre approval home loan lasts, MoneySmart says 3 to 6 months. The exact period varies by lender, so ask for it in writing and find out what happens if you need more time.
Pre approval vs unconditional approval
Pre-approval comes first, before you have chosen a property. Unconditional (final) approval comes later, after you have a contract and the lender has completed its checks, including the property valuation. MoneySmart notes that a conditional offer on a property becomes binding only if conditions such as finance approval are met, while an unconditional offer is binding outright, so be sure you have confirmed finance before going unconditional.
For a closer comparison, read our guides on how pre-approval works and pre-approval versus full approval.
What can go wrong: home loan pre approval delays and changes
- Missing, outdated or unclear documents slow the assessment and lead to home loan pre approval delays
- A change in income, a new debt, a larger credit limit or higher expenses can change your result
- The pre-approval can expire before you find a property
- A valuation lower than the price, or lender policy changes, can affect final approval
- Self-employed income can take longer to document and assess
Avoid taking on new credit or making big purchases while pre-approved, and tell your broker straight away if anything changes.
How Mortgagefy helps with pre-approval
We prepare your documents, match you to a suitable lender and explain the conditions in plain English. First home buyers can also explore our first home buyer information and the government's first home buyers website for schemes you may be eligible for. Talk to a Sydney mortgage broker before you apply, so you understand how applications may be recorded and what each lender will need.
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Frequently asked questions
What is home loan pre approval?
How to get pre approval for a home loan?
How long does pre approval take for home loan applications?
How long does pre approval home loan last?
What is a pre approval letter home loan buyers can show an agent?
Can pre-approval home loan decisions change before I buy?
Is there a pre approval home loan calculator I can use?
What causes home loan pre approval delays?
Information checked on 1 October 2026 against ASIC MoneySmart: Buying a house. Policies and lender requirements may change.
Confirm current requirements, documents and pre-approval validity directly with your chosen provider before applying.
This information is general in nature. Policies vary by lender and change frequently. Confirm current requirements with your chosen provider and seek professional advice.
Get a free pre-approval assessment
Speak to a broker about your documents, your price range and the next step before you start making offers.
Conditions apply. Eligibility, lending criteria, fees and charges apply and vary by lender. Not everyone will qualify. General information only - not credit or financial advice.