A pre-approval is an indication subject to its terms and conditions. It may be time-limited and still require a suitable property, valuation and updated verification. Read the actual approval conditions.
Know what has actually been assessed
Different lenders and processes may use different levels of verification before giving an indication. Ask what has been checked, what remains outstanding and what would cause the assessment to change.
Keep the property separate from the borrower
Being comfortable with a borrower does not mean a lender will accept every property at every price. The property type, valuation and other requirements may affect the final decision. Do not assume an online borrowing estimate is a pre-approval.
Protect the period between approval and purchase
Changes to employment, income, debts or circumstances can affect an assessment. Let your broker know about relevant changes and ask before relying on the earlier indication. A pre-approval may expire or need review.
Understand the contract before committing
Have a conveyancer or solicitor explain conditions, deadlines and auction obligations. A finance condition, where available and appropriately drafted, is a legal matter. Do not assume a pre-approval makes an unconditional commitment safe.
Use it as a planning tool
Work with a budget you are comfortable carrying and keep buying costs and a buffer in view. The practical goal is to search with better information, not to treat the maximum indicated amount as a spending target.
Sources & further reading
Prepared 4 October 2026. General information; check current rules for your circumstances.