What a pre-approval does and doesn't guarantee, how long it lasts, and when to get one.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
23 September 2026
Last revised
11 November 2026
Reading time
4 min read
TL;DRIn a nutshell
✓What it is: a lender's conditional agreement to lend you up to a set amount.
✓How long: usually valid for 90 days, sometimes extendable.
✓Not a guarantee: final approval still depends on the property and your circumstances.
✓When: get it before you start bidding or making offers.
What pre-approval is
Pre-approval means a lender has reviewed your income, expenses and credit history and is willing to lend up to a certain amount, subject to conditions.
From pre-approval to keys
1
Pre-approval
You know your budget.
2
Find a property
Make offers with confidence.
3
Formal approval
Lender values the property.
4
Settlement
Funds are released and you get the keys.
What it doesn't guarantee
The lender still needs to value the property and confirm nothing has changed. A new job, new debt or a low valuation can affect the final outcome.
"Pre-approval is your budget, not your finish line. Keep your finances steady until settlement and avoid any new credit."
Anthony Nocon, Financeo
Buying at auction
Auction purchases are unconditional, so there's no cooling-off period. Make sure your pre-approval is current and the lender is comfortable with the property type before you bid.
01
Letting it expire
Check the expiry date and renew before you bid.
02
Taking on new debt
A new car loan can reduce your approved amount.
03
Assuming any property is fine
Some lenders limit small apartments or unusual properties.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
Tick the boxes above to see where you stand.
Frequently asked questions
It adds a credit enquiry. Applying with one lender, through a broker, keeps the impact small.
This article is general information only and doesn't take your circumstances into account. Lending rules, rates and thresholds change, so check current details or speak with us before acting.
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
What a pre-approval does and doesn't guarantee, how long it lasts, and when to get one.
Anthony Nocon
Founder and Mortgage Broker, Financeo
Published
23 September 2026
Last revised
11 November 2026
Reading time
4 min read
TL;DRIn a nutshell
✓What it is: a lender's conditional agreement to lend you up to a set amount.
✓How long: usually valid for 90 days, sometimes extendable.
✓Not a guarantee: final approval still depends on the property and your circumstances.
✓When: get it before you start bidding or making offers.
What pre-approval is
Pre-approval means a lender has reviewed your income, expenses and credit history and is willing to lend up to a certain amount, subject to conditions.
From pre-approval to keys
1
Pre-approval
You know your budget.
2
Find a property
Make offers with confidence.
3
Formal approval
Lender values the property.
4
Settlement
Funds are released and you get the keys.
What it doesn't guarantee
The lender still needs to value the property and confirm nothing has changed. A new job, new debt or a low valuation can affect the final outcome.
"Pre-approval is your budget, not your finish line. Keep your finances steady until settlement and avoid any new credit."
Anthony Nocon, Financeo
Buying at auction
Auction purchases are unconditional, so there's no cooling-off period. Make sure your pre-approval is current and the lender is comfortable with the property type before you bid.
01
Letting it expire
Check the expiry date and renew before you bid.
02
Taking on new debt
A new car loan can reduce your approved amount.
03
Assuming any property is fine
Some lenders limit small apartments or unusual properties.
Quick self-check
Tick what applies to you. It's a rough guide, not an assessment.
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Frequently asked questions
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This article is general information only and doesn't take your circumstances into account. {{ discText }}
About the author
Anthony Nocon
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
