How to Get Preapproved for a Mortgage

To get pre-approved for a mortgage, submit an application with evidence of your income, expenses, deposit and debts. The lender reviews your application and tells you whether it will conditionally approve a loan amount.

Before relying on the result, check what the lender has actually assessed. An online borrowing estimate is different from a pre-approval based on checked documents. Even an assessed pre-approval has conditions to meet before formal approval.

ANZ and Westpac both use other names for pre-approval, including conditional approval and approval in principle, as at September 2026. Pre-approval isn’t formal approval. Formal approval, also called unconditional approval, comes only after the lender checks the property you buy and clears the remaining conditions.

How to Get Pre Approval

Get pre-approval in five steps, from collecting documents to submitting one application to one lender. You can apply to a lender directly or through a mortgage broker. Moneysmart’s guide to using a mortgage broker, updated 4 September 2026, says a broker arranges a home loan with banks and other lenders and must act in your best interests.

Under the Australian Securities and Investments Commission’s responsible lending rules, a broker makes a preliminary credit assessment that the loan isn’t unsuitable for you before helping you apply. Moneysmart suggests asking a broker which lenders they work with and which they can’t access.

Choose one lender before you submit, because your credit report records the number of credit applications you make. Moneysmart’s guide to credit scores and credit reports, updated 9 September 2026, says that number is one of the things a credit score is calculated from.

As at September 2026, Westpac says a request for conditional approval is recorded on your credit report whatever the outcome. In Westpac’s view, applying with several lenders at the same time can make your finances look unstable.

ANZ completes a credit check for its pre-approval and, as at September 2026, says the check may affect your credit report. Find out whether a lender’s pre-approval includes a credit check before you apply.

1. Collect the documents. Gather the evidence the lender will verify. ANZ asks about each item below, and other lenders’ lists differ.
   • Proof of identity.
   • Income and employment evidence. For self-employed income, see the self-employed home loan guide.
   • Details of your regular living expenses.
   • Savings statements that show your savings record and the deposit saved so far.
   • Statements for every debt, including credit cards and personal loans.
   • The price range you’re looking at.
2. Check the numbers. Compare the debts and expenses on your statements with the figures you plan to enter. Then work out the loan amount, the deposit and the loan-to-value ratio (LVR), which is the loan as a percentage of the property’s value. Move on only when your figures match the documents.
3. Choose one lender. Compare its policies with your income and deposit before applying. If you’re using a broker, they can use Bulma to check options across 52+ lenders and read the policy wording behind each answer. Check the chosen lender’s pre-approval conditions, such as NAB’s pre-approval terms.
4. Prepare the application. Enter the verified figures, attach the documents and add a note that explains anything unusual, such as a recent job change. A complete application gives the credit assessor fewer reasons to come back with questions.
5. Submit the application. Lodge it with the chosen lender and record the date. Measure the lender’s decision time from the day it has a complete application to the day it issues its decision letter.

After you submit, the lender sends either a decision letter or a request for more information. Answer any request with the exact document the lender asked for so the credit assessor can finish the review.

Online Pre-Approval Applications

Some lenders take pre-approval applications online, but the online step doesn’t always produce a checked result. ANZ, CommBank and Westpac each let you start a pre-approval application online, as at September 2026.

Westpac’s online step can show an indicative borrowing amount without affecting your credit report, unlike the later request for approval in principle. Westpac says this indication isn’t a definitive approval. A Westpac Home Finance Manager then helps you prepare for approval in principle, which can need more proof of your finances.

ANZ says it will call you within 48 hours of an online pre-approval request. It uses that call to collect the financial information it needs to complete the application.

If you’ve already applied online somewhere, find out what that application produced. An online result might be an estimate only, and any application that included a credit check is already on your credit report.

Identify the Assessment Level

Check who or what produced your result before you rely on it. A credit-assessed pre-approval means a credit assessor has checked your income, expenses, debts and deposit against your documents.

An online estimate and an automated system response both start from the figures that were entered. Neither one means a person has checked those figures against your payslips, statements and credit report.

Result	What produced it	What has been checked	What’s still needed before you rely on it
Online estimate	A calculator or online form using the figures you entered	Nothing has been verified	A full application, supporting documents, a credit check and a credit assessor’s review
Automated system response	The lender’s system scoring the application details	The details entered and sometimes a credit check	A credit assessor’s review of income, expenses, debts and deposit evidence, which can change the limit
Credit-assessed pre-approval	A credit assessor reviewing the application and supporting documents	Income, expenses, debts, deposit evidence and the credit report	The conditions in the decision letter, usually including the property’s valuation and contract

Moneysmart’s mortgage calculator gives an online estimate too. Its calculator page, updated 18 June 2026, says using the calculator doesn’t guarantee you’re eligible for a loan. You still have to meet the lender’s lending criteria.

An automated system response can also change once a person checks the documents. The limit can fall if the lender doesn’t accept your income type, such as casual or contract work. A debt that wasn’t entered can also reduce it.

Describe Each Result in Plain Words

Describe a result by what the lender has checked and what it still needs to check. The wording below works whether you hold the result or you’re helping a buyer who does. The $650,000 limit in the last row is a hypothetical example.

Result	What it means in plain words	Next step
Online estimate	This figure comes from the numbers entered. No lender has checked the documents yet, so it’s a guide to a price range only.	Collect the documents and prepare a full application.
Automated system response	The lender’s system has accepted the application details. A credit assessor still needs to check income, expenses and debts against the documents. That check can change the amount.	Wait for the credit assessor’s decision before making an offer.
Credit-assessed pre-approval	A credit assessor has checked the documents and approved a limit of $650,000, subject to the conditions in the letter. It isn’t formal approval until the lender approves the property and clears those conditions.	Start a condition register for the letter’s conditions.

Conditional Approval vs Pre-Approval

Pre-approval and conditional approval usually name the same stage, so read the lender’s decision letter instead of relying on the label. As at September 2026, Westpac calls that stage approval in principle.

ANZ says its pre-approval isn’t a guarantee that the home loan will be approved. As at September 2026, ANZ adds that a loan can be declined after pre-approval if the valuation falls short, the property type isn’t acceptable or your circumstances change.

CommBank’s conditional pre-approval estimates how much you could borrow from the information you provide. As at September 2026, CommBank treats it as confirmation that you’re eligible to apply up to a limit. Once you find a property, CommBank verifies your financial position before it gives formal approval.

Read the conditions in your letter to see what the lender has verified and what it still needs. Anything the lender hasn’t verified yet can still change the limit before formal approval.

Conditional approval is a good sign when a credit assessor issued it, because the lender has assessed your evidence and agreed to a limit. It becomes formal approval only after the lender checks the property and clears every condition. Start a condition register, a list of every condition in the decision letter, as soon as the letter arrives.

Manage Conditions

Manage conditions by recording every condition in the decision letter and tracking each one until the lender confirms in writing that it’s cleared. Start with the expiry date in the letter and set a reminder well before it.

Work from the date in your letter, not a general rule. As at September 2026, Westpac says pre-approval validity periods can differ between lenders.

Watch for changes to your job, income, expenses, debts or deposit. Also watch for a change to the loan amount, the loan type or the property you want to buy.

Tell the lender about any of these changes, or your broker if one arranged the loan, because the lender can reassess the limit. ANZ says, as at September 2026, that a change to income, expenses or type of employment may affect how much it will lend. For extensions and reassessment, use the guide to how long a home loan pre-approval lasts.

After Conditional Approval

After conditional approval, you find a property and sign a contract. The lender then checks the property and must give formal approval before settlement, when you pay the balance of the purchase price. What remains is getting each outstanding item to the lender, with details that match across the application, the contract and the letter.

As at September 2026, ANZ lists four things that need to happen as a loan moves towards full approval, its name for formal approval. They’re the contract of sale, confirmation that your finances haven’t changed, a valuation of the property and building insurance, which must be in place before settlement. ANZ may inspect the property for the valuation, and it can ask for more documents or add conditions.

Check the contract of sale against the decision letter before you sign. If the settlement date, deposit amount or a special condition doesn’t fit the loan, raise it with the lender and your solicitor or conveyancer first.

Check security approval too. Security is the property the lender can sell if the loan isn’t repaid, so the lender must accept it. ANZ’s pre-approval stays subject to the security being satisfactory to ANZ, including a satisfactory valuation.

If the lender is slow to clear a condition, use the pre-approval turnaround guide to find the cause of the delay and follow it up. For the full path from lender comparison to settlement, see the guide to applying for a mortgage.

Keep a Condition Register

Keep one condition register for each approval, with a row for every condition. Copy the lender’s wording exactly, because a paraphrase can lead to the wrong evidence being sent. The rows below are a hypothetical example.

Lender’s exact requirement	Evidence needed	Responsible person	Due date	Submitted version	Written clearance
Copy of the signed contract of sale, including special conditions	Full signed contract	Buyer’s solicitor or conveyancer	Within two days of signing	Contract, version 2	Cleared in lender email, 9 October 2026
Satisfactory valuation of the security property	Lender-ordered valuation	Lender, with the buyer or broker following up	Before formal approval	Not applicable	Open
Evidence of funds to complete	Savings statement showing the balance	Buyer	Before formal approval	Statement dated 1 October 2026	Open

A condition is cleared only when the lender says so in writing. Record the date of that written confirmation in the last column, not the date the evidence was sent.

When a condition stays open, compare the submitted version with the exact requirement. Then resend only the missing item.

If the lender adds a new condition, give it its own row, responsible person and due date. When the lender declines the loan instead, follow the steps for a loan declined after conditional approval.

Explain the Next Step

Confirm the result in writing, record what remains before formal approval and list what must still happen before exchange or settlement. Exchange is when you and the seller swap signed copies of the contract of sale. You can rely on the loan for a property only once the lender gives formal approval.

1. Confirm the result. Read the decision letter and note the approved limit, loan type, LVR, stage name and expiry date. Check whether a credit assessor issued it.
2. Record what remains. Enter every open condition in the condition register and mark what each one depends on. The valuation depends on the property, while updated payslips depend on you.
3. Write a short summary. Include the limit, the open conditions, the expiry date and what you must avoid until settlement. Share it with the people acting on the purchase, such as your solicitor or conveyancer and any broker helping you.

Here’s a sample summary with hypothetical figures. Adapt the limit, conditions and date to the actual letter.

Pre-approved for up to $650,000 until 20 December 2026. Before formal approval, the lender needs to value the property and see the signed contract. Until settlement, take on no new debt, keep the same job and leave the deposit where the lender saw it, unless the lender agrees to a change first.

Before you make an offer, check that the decision letter, the condition register and the summary show the same limit, conditions and expiry date. If any of them differs, fix the record first.

Before Bidding at Auction

Before you bid at auction, confirm your pre-approval is credit-assessed and current, with no open conditions about your own finances. An auction contract binds you on the day, so any condition still open on the pre-approval becomes your risk.

Moneysmart’s guide to buying a house, updated 14 July 2026, says most states and territories give a private sale a short cooling-off period. During that period, the buyer can usually get out of the contract. By contrast, an auction sale is final and isn’t subject to finance or a building or pest inspection.

The New South Wales Government’s auction guide, updated 8 July 2026, says there’s no cooling-off period for a property bought at auction. The winning bidder signs the contract and pays a deposit on the spot, usually 10% of the purchase price.

Consumer Affairs Victoria’s guide to buying at auction, updated 9 May 2021, says a winning bidder can’t make the contract subject to finance unless the seller agrees. Under that guide, the sale is binding once both parties sign the contract and the deposit is paid.

Run these checks before auction day, and keep a written note of each answer.

1. Confirm a credit assessor issued the pre-approval. An online estimate or an automated system response isn’t enough to bid on.
2. Check that only property-based conditions, such as the valuation and contract, are still open.
3. Confirm the decision letter is still valid on auction day.
4. Check whether your job, income, expenses, debts or deposit have changed since the letter was issued.
5. Confirm you can pay the auction deposit on the day. Check that the rest of your contribution will be ready for settlement.
6. Ask the lender whether it accepts the property type, size, location and title as security. If you use a broker, they can put this question to the lender’s business development manager (BDM).
7. Ask whether the lender will value this property before the auction. If the lender values it only after the auction, the bank property valuation arrives after the contract binds you.

ANZ calculates LVR on the property’s value as ANZ assesses it, as at September 2026. ANZ’s valuation may differ from the price you pay.

This hypothetical case shows how a low valuation affects a winning bid when the lender calculates LVR that way. The buyer holds a pre-approval for up to $720,000 at a maximum LVR of 90% and wins the auction at $800,000 with an $80,000 deposit. The lender then values the property at $770,000.

At a 90% maximum LVR on the $770,000 valuation, the lender lends up to $693,000. The buyer must then find an extra $27,000 on top of their $80,000 deposit and purchase costs before settlement.

See a solicitor or conveyancer about the auction contract in your state or territory before you bid, as the New South Wales guide recommends for contract review. In Victoria, Consumer Affairs Victoria recommends independent legal, finance and building help before bidding.

If any check fails, find out before auction day what it would take to close the gap. Then set a bidding limit that your pre-approval, deposit and open conditions can support.