The short answer
Pre-approval (also called conditional or approval in principle) is a lender's indication of how much it is prepared to lend you, based on your income, expenses and credit history. It is not a guarantee. It commonly lasts three to six months depending on the lender, and final approval still depends on the property valuation and your circumstances not changing.
Why get pre-approval?
Pre-approval gives you a realistic budget before you start looking, so you are not bidding on homes you cannot finance. It also shows agents and sellers that you are a serious buyer, and it lets you move quickly once you find the right place, which matters at auctions where contracts are unconditional.
How long does pre-approval last?
Most lenders' pre-approvals last around three to six months. If yours expires before you buy, the lender will usually need updated payslips and bank statements to renew it, and it may be reassessed under its policy at that time.
What can stop pre-approval becoming a full approval?
- The property is valued below the purchase price, or the lender does not accept the property type
- Your income, job or expenses change, for example a new job still on probation
- You take on new debt, such as a car loan or a new credit card
- Lender policy or interest rates change before you buy
- Missing or inconsistent documents
How long does it take to get pre-approved?
With documents ready, many lenders assess a pre-approval within a few days to two weeks. Timeframes vary by lender and season. Having payslips, bank statements and ID ready speeds things up, and a broker can choose a lender with turnaround times that suit your search.
Frequently asked questions
A full pre-approval application usually adds an enquiry to your credit file. That is why we compare lenders first and only apply where approval is likely, rather than applying to several lenders.
Many buyers do, but auction contracts are unconditional, so you are committed even if final approval later fails. Make sure the lender has assessed you fully and, ideally, valued the property or one like it before you bid.
No. Unconditional (formal) approval comes after you sign a contract and the lender has valued the property and confirmed your details. Only then is the lender committed to the loan.
Sources
Related
General information only. It does not take into account your objectives, financial situation or needs. Lender criteria vary and approval is at the lender's discretion. Homestead is a mortgage broker, not a lender. Last updated 2026-11-05.