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What you need to know about conditional approval

What comes first, the home or the home loan? Unlike the age-old question, ‘the chicken or the egg’, this one has a simple answer: conditional approval for the home loan.

Conditional approval vs. pre-approval

Some banks offer pre-approval, which is an indication you’re eligible for a home loan without going into the nitty gritty of your financial position. At UBank, we offer conditional approval, which involves a more thorough deep-dive into your ability to service the loan, so you can feel more confident about making an offer when you’ve found the right property.

The benefits of conditional approval

With conditional approval, the leg work can be done up front. Leaving you to think about the important things, like getting through those house-hunting inspections easily.

Conditional approval gives you the benefit of knowing how much you can borrow so you can focus on properties in your price range.

Once you’ve saved for a deposit and started looking for your future home, having conditional approval will position you as a serious buyer in the eyes of real estate agents and property owners. Which means, if you make an offer on a house or place a bid at auction, you can do so with the confidence of knowing your maximum loan amount.

What documents you’ll need

Before you apply for conditional approval, you’ll need to gather some important documents to help with the application process.

  • Identification: passport or driver’s licence
  • Evidence of your income: recent payslips and tax returns.
  • Current savings: bank statements
  • Current debts: credit card, student or other loan debts. We’ll also need to know your total credit card limit.

You can find a full checklist here.

Then what happens?

Once you’ve gathered your documents together, filled in and submitted your application (which takes as little as 4 minutes if you’re prepared!), you can start searching for your dream home while we take a look at your conditional approval application. If everything’s in order, you’ll receive a letter from us with your 90-day conditional approval.

When it comes to streamlining your home loan experience, conditional approval can help. And once you’ve found ‘the one’, it’s time to make it official with a home loan.


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.