Home Loan Pre-approval

A question we are commonly asked is how long does a home loan pre-approval last for?

The answer is very simple. A home loan pre-approval can last between 3-6 months, depending on which lender you have applied with.

A home loan pre-approval is a great way to start preparing for buying a property, because it will be a strong guide to educating you on how much you can borrow from a bank.

When you apply for a pre-approval the bank will assess your personal and financial position. This means they will ask for a statement of position which is a detailed list of all of your income, living expenses, assets and liabilities.

From here the bank will complete an internal budget to determine where, based on your financial position, you are able to afford the new loan.

The bank will take into consideration any one of expenses you might have and factor these in. The bank will also assess your affordability on a higher interest rate than the current interest rate to allow for some potential future interest rate rises.

A pre-approval is strongly suggested prior to entering into a contract to purchase a property.