Stage 5 of 8
Pre-approval explained
First Home Buyer
Stage 5 / 8 · Pre-approval
Pre-approval explained
Pre-approval is a soft credit assessment, not a loan offer. It tells you a price, gives you negotiating confidence, and lasts 90 days at most lenders.
Pre-approval is not a guarantee. It’s a lender saying “based on what you’ve told us, and a credit check, here’s what we’d likely lend.” The valuation, the property, and any change in your finances can still kill the deal.
What pre-approval actually does
Sets your maximum price ceiling. Lets you make conditional offers without “subject to finance” clauses being a deal-breaker. Costs a credit enquiry on your file (one is fine; six in three months is not).
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WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.