Pre-approval is when you stop guessing your budget and start house-hunting with a number a lender has actually looked at. Lenders want a pile of paperwork first. Here's what to pull together so your broker can lodge in a day, not a fortnight.
What pre-approval actually is
Pre-approval (aka "conditional approval") is the lender's signal that, based on your finances, they'd lend you up to a certain amount. It is not a guaranteed loan.
Three terms to keep straight:
- Pre-approval / conditional approval. Finances checked. Subject to a satisfactory property valuation and final credit check.
- Unconditional / formal approval. Comes after your offer. Lender has valued the property and is ready to fund.
- Settlement. Loan is drawn and the property is yours.
Pre-approval typically lasts 3 months with the major banks (CBA, NAB, ANZ, Westpac); some non-majors stretch to 6. If it lapses, re-submit current documents.
The document checklist
Visual: The pre-approval document checklist
Identity (100 pts)
- Driver's licence or passport
- Medicare or birth certificate
- Recent utility / rates bill
Income (PAYG)
- 2 most recent payslips
- ATO income statement / PAYG summary
- Employment letter (if new/casual)
Savings & deposit
- 3 months bank statements (all accounts)
- Evidence of deposit source
- Gift letter (if applicable)
Debts & expenses
- Credit card statements (every card)
- Personal/car loan statements
- HECS balance + BNPL accounts
- 3 months transaction statements
- Rental ledger (if renting)
Self-employed extras
- Personal + business tax returns (2 yrs)
- Matching ATO Notices of Assessment
- 12 months BAS + current P&L / balance sheet
- ABN + GST registration details
From a complete pack to a pre-approval letter is typically 2–5 business days.
Identity (100 points of ID)
Standard 100-point check — at least two forms, one with a photo.
- Photo ID. Driver's licence or passport (70 points)
- Secondary ID. Medicare card, birth certificate, or utility bill (25–40 points)
- Proof of address. Rates notice, utility bill, or rental ledger
Income (PAYG employees)
- Two most recent payslips. No older than 60 days, showing YTD figures
- ATO Income Statement or PAYG Summary. Last financial year, from myGov
- Employment contract or letter. If you're new, on probation, or casual
- Tax return or NOA. Especially for bonus or commission income
Income (self-employed)
The bigger pile. Lenders want a track record:
- Personal tax returns. Last 2 financial years
- Business tax returns. Last 2 financial years
- ATO Notices of Assessment. Matching both years, no older than 22½ months
- BAS. Last 12 months
- P&L and balance sheet. Current year if returns aren't lodged yet
- ABN and GST registration details
Some lenders (including NAB) accept one year of financials if your LVR is ≤ 80%. Low-doc options exist for 12+ months trading without two full tax years.
Savings and deposit
- 3 months of bank statements for every account holding savings
- Evidence of deposit source. Savings, asset sale, inheritance, First Home Super Saver release
- Gift letter if part is a family gift. Must state the amount, that it's non-repayable, and be signed by the giver.
The "genuine savings" rule
Borrowing over 80% LVR? Most lenders require 5% of the purchase price as genuine savings — funds you've accumulated yourself over at least 3 months. Gifts, tax refunds, and windfalls don't count as genuine savings but can still form part of your deposit.
Debts and expenses
- Credit card statements. Every card, even unused ones — lenders assess the limit, not the balance
- Personal/car loan statements. Current balance and repayments
- HECS/HELP balance. From your latest NOA or ATO account
- BNPL accounts. Afterpay, Zip, Klarna. Lenders see them on statements anyway — disclose them.
- 3 months of transaction statements for the expense assessment
- Rental ledger or 3 months of rent payments if you're renting
Other
- First Home Owner Grant or state first home buyer concession documentation if you're claiming any of them. The state grants are administered by Revenue NSW, State Revenue Office Victoria, and Queensland Revenue Office respectively. Most applicants lodge through their lender (an approved agent) at settlement, but the underlying paperwork sits with the state revenue office.
- Insurance details if you already hold landlord or building cover
State-specific paperwork at a glance
The core pre-approval pack is national, but stamp duty concession and first home grant evidence is state-specific. Pull these together early so your broker can attach them when the lender lodges on your behalf.
- NSW. First Home Buyers Assistance Scheme (full exemption up to $800,000, concession to $1,000,000) and the First Home Owner (New Homes) Grant ($10,000, new builds up to $600,000). Evidence: signed contract of sale, proof of identity, and the Revenue NSW first home buyer page outlines the forms your lender or solicitor lodges.
- VIC. First home buyer duty exemption (up to $600,000) or concession ($600,001–$750,000), plus the $10,000 First Home Owner Grant for new builds up to $750,000. Evidence: signed contract, proof of identity, and the SRO duty exemption page plus the FHOG lodgement guide.
- QLD. First Home Concession on transfer (stamp) duty for homes under $800,000 and the $30,000 First Home Owner Grant for new builds under $750,000 (contracts signed before 30 June 2025) or $15,000 thereafter. Evidence: signed contract, 100-point ID, and the documents listed on the QRO first home grant supporting documents page.
If you're unsure which scheme you qualify for, the national firsthome.gov.au portal links to every state and territory revenue office in one place.
Self-employed vs PAYG: at a glance
Visual: PAYG vs self-employed
PAYG employee
- 2 most recent payslips
- ATO income statement / PAYG summary
- Employment letter (if new/casual)
- Tax return / NOA (if bonus or commission)
Self-employed / sole trader
- Everything PAYG needs, plus:
- Personal tax returns, 2 years
- Business tax returns, 2 years
- Matching ATO Notices of Assessment
- BAS for the last 12 months
- Current P&L + balance sheet
- ABN + GST registration details
A handful of lenders (including NAB) will look at 1 year of financials if your LVR is ≤ 80%.
How long pre-approval lasts (and what kills it)
Most majors issue pre-approval for 90 days; some lenders stretch to 120 days or 6 months. If it lapses, re-lodge fresh payslips and bank statements — it's faster the second time.
Things that kill pre-approval
Visual: 6 things that can kill your pre-approval
| # | What kills it | Do instead |
|---|---|---|
| 1 | Changing jobs or going on probation | Sit tight until settlement |
| 2 | Applying for new credit cards or BNPL | Close unused BNPL accounts now |
| 3 | Increasing existing credit limits | Lower limits if you can |
| 4 | Taking on a car loan or personal loan | Wait until after settlement |
| 5 | Missing a bill or loan repayment | Set every bill to auto-pay |
| 6 | Lender tightens criteria mid-search | Stay close to your broker. They have alternatives. |
The safest move between pre-approval and unconditional: change nothing. Lenders re-run the credit check before formal approval.
Aussie and Unloan list job changes, new credit, missed payments, and tightened lender criteria as the top reasons pre-approved loans get knocked back at the final hurdle.
Timeline
From a complete pack to a pre-approval letter is usually 2–5 business days. NAB notes it can be "a few hours" on a clean application or "a few weeks" if anything needs follow-up. Two things slow it down: missing documents and unexplained transactions.
What pre-approval doesn't do
It doesn't guarantee the loan. After your offer, the lender still needs to value the property, re-verify income and savings, run a final credit check, and issue formal approval.
That's why the finance condition in your contract matters — it's what lets you walk away without losing your deposit if full approval falls through.
What's next
No broker yet? Start there — they'll do the paperwork heavy lifting and shop your application across lenders. Once pre-approved and house hunting, line up your conveyancer. We review contracts before you sign — get a fixed-price quote.
Sources
- ASIC Moneysmart: Home loans and Buying a house
- NAB: Home loan pre-approval and Self-employed home loan
- ANZ: Home loan application checklist
- CommBank: Conditional pre-approval and the home loan process
- Aussie: Reasons your home loan may be rejected after pre-approval
- Unloan: 8 reasons your home loan may be rejected after pre-approval
- APRA: Activation of debt-to-income limits as a macroprudential policy tool
- MFAA: Find a broker FAQs
- Home Loan Experts: Genuine savings explained
- Revenue NSW: First home buyer schemes overview and First Home Owner (New Homes) Grant
- State Revenue Office Victoria: First home buyer duty exemption or concession and First Home Owner Grant
- Queensland Revenue Office: First home concession (transfer duty) and First home owner grant supporting documents
- First Home Owner Grant national portal: firsthome.gov.au
- https://findabroker.mfaa.com.au/
General information only — not financial or legal advice. Lending criteria and conveyancing rules vary; confirm your situation with your broker, lender or a licensed conveyancer.