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Pre-approval for the home loan


Everything to know about pre-approval AKA approval in principle

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: pre-approval for the home loan.

What is pre-approval and is it the same as approval in principle?

Same, same but different names. Whether it’s called pre-approval or approval in principle, the bank will look into whether you can service a home loan by calculating your borrowing power. 

The benefits of pre-approval

With pre-approval, the legwork can be done upfront leaving you to think about the important things, like getting through those house hunting inspections.

Once you’ve found a place you like, having pre-approval could help you get a foot in the door and position you as a serious buyer. If you decide to make an offer or place a bid at auction, you can do it with confidence knowing your borrowing capacity and maximum loan amount.

How long does home loan pre-approval take?

To help make the UBank loan application process super speedy, you'll need to prep some important documents before applying. These include:

  • 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 loans. We’ll also need to know your total credit card limit.

You can find the full checklist here.

PSA: There’s also some requirements for pre-approval you’ll need to meet, like being over 18 and an Aussie citizen.

After you’ve sorted the documents, filled in our form and hit submit, you can start searching for that dream home while we check out your application. If everything’s A-OK, you’ll receive a letter from us with a 90-day approval in principle.

Pro tip: Once you know your borrowing pow
er, crunch the numbers with our home loan calculator to find out what your mortgage repayments could look like.

Does pre-approval guarantee a loan?

Pre-approval is a step in the right direction, but it doesn’t always mean you’ll get the home loan. Once your offer is accepted, we’ll need to run our eyes over your application again and do a property valuation that meets our standards before giving full approval.

If the loan is declined, it might be because your financial situation has changed e.g. a dip in income or you’ve switched jobs. It could also be because the home doesn’t fit our mortgage requirements or there’s questions about whether it can be repaid.

Buying a home is very exciting but it can also take time. If you’re looking for ways to streamline the loan experience, pre-approval might help. Once it’s locked in, you’re one step closer to turning the key in your new front door.

What’s the best way to get pre-approved for a mortgage? With a home loan application! Get started today.

Not quite ready? You could keep saving for a deposit in a USave savings account, plus score bonus interest when linking a USpend transaction account and meeting our bonus interest criteria*.



*To qualify for the bonus variable interest rate on eligible amounts in your USave account(s) in a calendar month, you must have both a USave and USpend account and deposit $200 or more into your USpend transaction account or your linked USave savings account from non-UBank accounts during the same month. The bonus variable interest rate will be applied to a combined balance of up to $250,000 held in your USave account(s), including joint accounts. Any remaining balance greater than $250,000 will earn the USave base variable rate. Bonus interest is earned the same month you meet the bonus interest criteria and paid by the first day of the following month.

Before making a decision to acquire a USave or USpend, you should obtain and consider the relevant Terms and Conditions available at USave and USpend are issued by UBank, a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.

Terms and conditions, fees and charges, credit criteria apply to all UBank’s home loan products and are available on application. Credit is provided by AFSH Nominees Pty Ltd ABN 51 143 937 437 Australian Credit Licence 391192. UBank is the mortgage manager for UHomeLoan products.

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.