Nov 22, 2023 5:18:00 AM

The Importance of Pre-Approvals in the Aussie Real Estate Market

Topics: Pre-approvals, Home Loan, Buying and selling 0

In the fast-paced world of real estate, securing your dream home or investment property can be a competitive and challenging process. The ability to move quickly when it comes to making an offer can mean the difference between success and losing out. One powerful tool that can provide a significant advantage in the property market is a pre-approval. Read on to find out the key aspects of pre-approvals and why they are crucial in navigating the dynamic Australian real estate landscape.


What is a pre-approval?

A pre-approval is essentially a written commitment from a lender that confirms how much you can borrow based on your financial situation. It involves a thorough assessment of your income, expenses, credit history, and other relevant factors. And, while it's not a guarantee of final approval, a pre-approval provides a solid foundation for your property search, giving you a clear understanding of your budget and allowing you to act quickly when you find the right property.

How do I get pre-approved?

Getting pre-approval involves a straightforward process:

  • Gather the required documentation: Be prepared to provide proof of income, employment details, tax returns, and information about your assets and liabilities.
  • Choose a lender: Work with a reputable mortgage broker, such as those at Mortgage Express, who can guide you through the pre-approval process. A mortgage broker can help you select the right loan product and navigate the paperwork required by the lender.
  • Complete the application: Fill out the pre-approval application with accurate and detailed information. This step is crucial for the lender to assess your financial health accurately.
  • Wait for the assessment: Once you've submitted your application, the lender will assess your financial situation and determine the amount you can be pre-approved for.

How long does pre-approval last?

It's important to note that a pre-approval has a shelf life. Typically, pre-approvals in Australia are valid for around three to six months, but this timeframe can vary among lenders, so it's important to confirm the expiration date with your chosen lender. If your property search extends beyond the validity period, you may need to go through the pre-approval process again to ensure the information is current.

Why get pre-approval?

There are a number of benefits to getting pre-approved finance before you begin your property search, including:

  • Clear understanding of your budget: A pre-approval helps you establish a realistic budget for your property search, so you don’t waste time viewing properties that are beyond your financial reach.
  • Negotiation power: Sellers are often more inclined to negotiate with buyers who have a pre-approval, as it signals that you are a serious and capable buyer. Having pre-approved finance could be a significant advantage if you’re up against other buyers interested in the same property.
  • Quick decision-making: In a competitive market, time is understandably of the essence. With a pre-approval, you can make swift and confident decisions when the right property becomes available.
  • Peace of mind: Knowing that you are pre-approved up to a specific amount provides peace of mind during the house-hunting process. You can focus on finding your dream property without the stress of uncertain financing.

A valuable tool for home buyers

In the dynamic and competitive Australian real estate market, a pre-approval is a valuable tool that can streamline your property search and enhance your bargaining power. By understanding what a pre-approval is, how to obtain it, and its benefits, it’s possible to position yourself as a well-informed and attractive buyer in the eyes of sellers.

Take the first step towards your property goals by securing a pre-approval today. Contact a Mortgage Express broker to get mortgage advice tailored to your circumstances and lifestyle.


While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA) | Member of Choice Aggregation Services.