Your guide to conditional approval

The process of buying a home can be overwhelming, especially if you’re a first home buyer. Getting conditional approval can help remove a lot of the stress that comes with buying a home and applying for a home loan.  

What is conditional approval?

Conditional approval is preliminary approval from a lender that shows you’re eligible to apply for a home loan within your borrowing power. Based on the information you provide, it gives you a clear idea of what a lender is willing to loan you, and what properties you’ll be able to afford.  

What are the advantages of having conditional approval?

Getting conditional approval with a lender can help remove a lot of the stress that comes with buying a home and applying for a home loan. By having an indication of what a lender is willing to loan you, you can confidently focus your property search on homes within the price range, and in suburbs that you can afford.

How is it different to unconditional approval?

Conditional approval doesn’t guarantee your home loan application will be approved. Once you have found a property, and are ready to apply, lenders will complete a formal assessment to verify the information provided, and come back with unconditional approval if you meet their eligibility requirements.

How long does conditional approval last?

Conditional approval timings can differ between lenders, but on average last between three to six months. If you need to extend your conditional approval, make sure you speak to your lender before it expires.  

Can I get a conditional approval from multiple lenders?

Yes, you can get approval from multiple lenders – approval aren’t legally binding – it doesn’t guarantee you’ll move forward with your application, or the lender will lend you the amount. If you’re considering getting approval from multiple lenders, be mindful of how this may impact your credit score.  

What do I do after I have conditional approval?

Once you have conditional approval, you can confidently search for your dream home and make offers, subject to unconditional approval. Ensure you speak to a solicitor or conveyancer to factor in any timelines and contingencies such as finance and/or pest and building inspections.

What happens if I'm rejected after receiving a conditional approval?

If you’re rejected by a lender and don’t receive conditional approval, don’t be disheartened. Make sure you take the time to discuss the reasons why you were rejected, and what changes you can make to ensure you have a better chance next time.  

Learn more about buying a home and factors to consider here.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.