Pre-approvals can be helpful when refining your property search, bidding with confidence, or demonstrating to selling agents that you are finance-ready. However, not all pre-approvals are created equally.
Not all pre-approvals work the same way
The way lenders handle pre-approvals varies significantly:
- Some lenders issue automated pre-approval letters based on limited information and system checks
- Some lenders complete a full credit assessment, similar to a live application
- Some lenders do not offer pre-approvals at all
- In some cases, lenders allocate fewer resources to pre-approvals, meaning they can take longer than a standard purchase application
Because of these differences, a pre-approval may provide very different levels of certainty depending on the lender.
Our indicative finance position letter
In many cases, we provide clients with an Indicative Finance Position Letter as a faster and more practical alternative to a lender pre-approval.
This letter is prepared by our lending team based on a detailed review of your financial position and current lending policy. It outlines an indicative borrowing range and key assumptions, giving you a clear view of your position without waiting for a formal lender pre-approval.
Why this can be helpful
An indicative finance position letter can:
- Be issued much faster than a formal lender pre-approval
- Provide clarity on borrowing capacity while you search for a property
- Help you move quickly in competitive markets
- Avoid delays caused by lender pre-approval backlogs
- Be updated easily if your circumstances or target property change
It is important to note that an indicative finance position is not a lender approval. Any formal approval remains subject to lender assessment, valuation, credit policy and verification at the time of application.
When a formal pre-approval makes sense
There are situations where a full lender pre-approval is appropriate. We will talk this through with you and help determine the most effective approach based on your timing, property plans and the lenders being considered.
If your circumstances change or your pre-approval is approaching expiry, let us know. With your information already on hand, we can discuss next steps and help progress your application efficiently.