How long does pre-approval last?

couple in front of their home

If you’re reading this, chances are you’re in the official stages of your home buying journey. Congrats!

Pre-approval does not mean your home loan has been approved, but it’s a strong indication that your loan might be approved by your lender at a later date.

When should I apply for pre-approval?

Applying for pre-approval should be one of the first steps in the process of buying property. That means you should have your entire deposit saved up, evidence of genuine savings, a good credit score, a general idea of your borrowing power and ready to find your dream home.

Having a pre-approval is not mandatory, but it really helps you get a better understanding of how much money a lender is willing to lend you. It’ll give you a clear idea of your budget when house hunting. Having a pre-approval also signals vendors that you’re serious about buying, which might up your chances against someone who might not have a pre-approval.

For how long do I have a pre-approval?

The length of your pre-approval depends on your lender. Most pre-approvals last up to 90 days, but there are some lenders that offer longer terms. When looking at potential lenders, make sure to ask how long the pre-approval period lasts so you aren’t caught by surprise when the time lapses.

Can I extend my pre-approval?

What happens if you don’t find your new home in time? Well, you can ask your lender to extend your pre-approval term. Be sure to keep in mind that, when you ask for an extension your lender will reassess your application to make sure your financial situation hasn’t worsened.

Does applying for a pre-approval affect your credit score?

When your lender is assessing your pre-approval application they will do a check on your credit report to confirm you are a responsible borrower. Anytime a lender does this, it’ll trigger a hard enquiry.

A single hard enquiry won’t hurt your score, but if you get several of them over a short period of time, it might give the impression that you’re desperate for a loan and no one is willing to give you one. It’ll also appear on your credit history and you’ll run the risk of hurting your chance of approval.

Related: Does home loan pre-approval impact my credit score?

Can I be denied a pre-approval?

Yup! There is always a chance that your pre-approval application might be denied. You may get denied if you don’t properly document your income, if your credit rating is low or if you’ve applied for too many loans in the past. 

So before you apply make sure to double-check your finances and paperwork. Also look for ways to boost your chances of approval, like holding off from a major purchase (i.e. a new car) or getting a new job.

If you’re still considering your home loan options, visit our home loan comparison page, or start browsing a few of the offers below.

Home loan comparisons on Mozo - last updated 6 July 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
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    Initial monthly repayment
    2.60% p.a.variable for 24 months and then 3.00% p.a. variable
    2.96% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Owner Occupier, Refinance Only

    interest rate
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    Initial monthly repayment
    2.64% p.a. variable
    2.56% 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.

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    Variable Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
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    Initial monthly repayment
    2.59% p.a. variable
    2.49% p.a.

    $5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply. Mozo Experts Choice Award winner for 2022^.

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.84% p.a. variable
    2.84% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. Apply online in as little as 15 minutes.

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  • Variable Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    2.64% p.a. variable
    2.66% p.a.

    Purchase and Refinance. Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application.

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* 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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