Pre-approval is an early indication from a lender of how much it may be prepared to lend you. To get there, the lender needs to verify who you are, what you earn, what you have saved and what you owe. Having those documents ready before you apply can help avoid delays.
The exact list varies between lenders and depends on your circumstances, so ask your lender or broker for their checklist. The lists below cover what is commonly requested.
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The document checklist
Identity
Lenders need to verify your identity. Commonly accepted documents include:
- Photo identification, such as a driver's licence or passport
- Supporting identification, such as a Medicare card or birth certificate
- Proof of your current address, such as a recent utility bill or rates notice
Your lender or broker will tell you which combination they accept and whether they can verify your identity electronically.
Income (employees)
- Recent payslips, usually showing year-to-date earnings
- Your ATO income statement for the last financial year, available through myGov
- An employment letter or contract, particularly if you are new to the role, on probation or casual
- Tax returns or Notices of Assessment, particularly if your income includes bonuses, commission or overtime
Income (self-employed)
Lenders generally want to see a track record of business income. Commonly requested:
- Personal tax returns and Notices of Assessment, usually for the last one or two financial years
- Business tax returns for the same period
- Business activity statements (BAS)
- A current profit and loss statement and balance sheet, particularly if your latest returns haven't been lodged
- ABN and GST registration details
Requirements for self-employed applicants vary more between lenders than for employees, so this is where an early conversation with a lender or broker helps most.
Savings and deposit
- Bank statements for the accounts holding your savings, usually covering the last few months
- Evidence of where your deposit came from, such as savings, the sale of an asset, an inheritance or a First Home Super Saver release
- A gift letter if family members are contributing. Lenders usually want it to confirm the amount, that it doesn't need to be repaid, and who is giving it.
Some lenders also look for "genuine savings", meaning money you have built up yourself over time, particularly if you are borrowing a high proportion of the property's value. Whether this applies, and what counts, depends on the lender.
Debts and expenses
- Credit card statements for every card, including cards you rarely use. Lenders may assess the credit limit, not just the balance.
- Personal and car loan statements
- Your HECS/HELP balance
- Buy-now-pay-later accounts
- Transaction statements, so the lender can assess your living expenses
- Rent payment records, if you are renting
Disclose all of your debts upfront. Debts identified later in the process can mean the lender needs to reassess your application.
Grants and concessions
If you plan to apply for a first home owner grant or a stamp duty concession, the evidence you need depends on the scheme and the state. Eligibility rules, thresholds and amounts change, so check the current position with the relevant state revenue office before relying on a scheme in your budget:
- Revenue NSW: First home buyer schemes
- State Revenue Office Victoria: First home buyers
- Queensland Revenue Office: First home grant
Your broker can also tell you which lenders process the schemes you may be eligible for.
How long does pre-approval last?
It varies between lenders. If your pre-approval expires before you buy, you may need to provide updated documents and have your borrowing position reassessed. Ask your lender how long yours lasts when it is issued.
What can affect your pre-approval before final approval?
Lenders generally check your circumstances again before formal approval, so changes in the meantime can matter. Talk to your lender or broker before:
- changing jobs or employment type
- applying for new credit, including credit cards or buy-now-pay-later
- increasing a credit limit
- taking on a car or personal loan
Missed repayments and changes to a lender's own criteria can also affect the outcome.
How long does it take to get pre-approval?
It depends on the lender and on your application. A complete set of documents can help avoid delays, while missing documents and unexplained transactions commonly slow things down.
What pre-approval doesn't do
Pre-approval isn't final loan approval. Once you find a property, the lender may still need to value it, re-check your financial position and complete its remaining checks before formal approval.
That's why it matters to understand any finance condition in your contract: what it requires, when the deadline falls and what happens if formal approval isn't in place by then. Whether a finance condition is included, and what it allows you to do, depends on the contract and the state. See contract conditions: what they mean and the deadlines that matter.
What's next
Once you're pre-approved and looking at properties, line up your conveyancer so the contract can be reviewed before you sign. Get a fixed-price quote.
Sources
- ASIC Moneysmart: Home loans and Buying a house
- ANZ: Home loan application checklist
- CommBank: Conditional pre-approval and the home loan process
- MFAA: Find a broker FAQs
- Revenue NSW: First home buyer schemes
- State Revenue Office Victoria: First home buyers
- Queensland Revenue Office: First home grant
General information only, not financial or legal advice. Lending criteria vary; confirm your situation with your broker or lender.
