Want a home loan? Consider pre-approval first

First home owner couple in front of their new house.

A home loan pre-approval does not mean you are approved for a home loan, but it is a strong indication that your loan may be approved at a later date.

Typically a pre-approval lasts for about 3-6 months, depending on the lender you went with. So it is recommended that you apply for a pre-approval when you are ready to go house hunting. 

Keep in mind that at this stage of your home buying journey all your finances need to be in check including: 

  • A deposit 
  • Genuine proof of savings
  • Good credit score

If you’re not entirely sure if you have everything you need to apply for a pre-approval, check out Mozo’s how to apply to a home loan guide.

A benefit of a home loan pre-approval is that it will keep you from spending beyond your limits. It also allows you to see the types of properties that are in your budget. 

For example, Carlos and Juan go to a house auction in Melbourne. They recently got a home loan pre-approval of $900,000 and have a $100,000 deposit. That means that they can purchase up to a $1 million property. At the auction, they know that their hard limit is $1 million: once the bidding passes this number they should stop and try elsewhere. If Carlos and Juan tried to bid past their limit, they run the risk of not getting their loan approved since it is more than the pre-approval amount.

While obtaining a home loan pre-approval is not necessary for your home buying journey, it typically is a good extra-step to take to make your process smoother.

If you’re thinking about buying a new home and want to learn about the home loan process check out Mozo’s home loan guides.

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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