Most people call it ‘pre-approval’. A more accurate name is indicative approval — and that phrasing matters, because it tells you what the approval actually is and what it isn’t.
Indicative approval is a written indication from a lender of how much they’d be willing to lend you, based on the information you’ve given them so far. It’s not a guaranteed loan. It’s a strong, useful signal — and in most situations, it’s exactly what you need before you start house hunting.
Why indicative approval helps
- It sets your budget. You know roughly what you can spend before you fall in love with a place you can’t afford.
- It strengthens your offer. Sellers and agents take offers more seriously when there’s written backing behind them.
- It speeds things up. Once you’ve found the property, the formal approval is mostly about valuing the place — not re-checking you.
- It surfaces issues early. If something in your file is going to cause trouble, better to find out before you’ve made an offer.
What it doesn’t guarantee
Indicative approval is conditional. It assumes the information you’ve provided is accurate, that the property you eventually buy is acceptable to the lender, and that nothing significant changes in your finances between now and settlement. A few things can knock it over:
- Taking on new debt (a car loan, a credit card, a Buy Now Pay Later balance).
- Changing jobs or dropping hours.
- The property not meeting the lender’s valuation or lending criteria.
- Interest rate or policy changes at the lender.
“Get indicative approval, then live like a monk until settlement.”
How long it lasts
Indicative approvals typically last around 3 months, sometimes up to 6 depending on the lender. After that the lender usually wants a refresh — a quick update on your income and a check that nothing’s changed. If you’re still house hunting, we just reissue it.
What you’ll need
- Photo ID.
- Recent payslips (usually the most recent 2) and your latest group certificate if it’s that time of year.
- Bank statements showing your savings and day-to-day spending (usually 3 months).
- Statements for any existing loans or credit cards.
- Self-employed? Bring your last two tax returns and notices of assessment — see our self-employed page.
Get your number first
Before you book a call, have a play with the borrowing power calculator — it’ll give you a ballpark. Then have a chat with James and we’ll get an indicative approval lined up so you can go to inspections with a real figure in your back pocket.
Estimates and general information only. Talk to James for advice tailored to your situation.