Glossary · Finance & Lending
Pre-Approval Mortgage
18 August 2026 · 1 min read
Written for Buyer's Agent, Mortgage Broker, Consumer/Investor
A pre-approval, or conditional approval, is an indication from a lender of how much they are willing to lend a borrower, based on an initial assessment of their financial position, before a specific property has been found.
Pre-approval gives a buyer a clearer picture of their realistic budget and demonstrates to vendors and agents that they are a serious, finance-ready buyer, which can be an advantage in negotiations or at auction. It is generally valid for a limited period, often three to six months, and remains conditional on the lender's final assessment of the specific property being purchased, along with any updated changes to the buyer's financial circumstances. Buyers agents typically encourage clients to secure pre-approval before beginning an active property search.