How long does it take for preapproval

Pre-approval. The first big step towards homeownership and a total no brainer. 

Pre-approval gives you a conditional tick for a home loan. It’ll tell you how much you can borrow and how much you’ll be paying back over time. So it’s kinda handy.

Armed with those special details, you’ll know exactly what property you can afford and can officially start your home buying journey. Happy days!

But we’re getting ahead of ourselves.

Pre-approvals don’t magic out of thin air. They take time. So just how much time does it take to get pre-approved for a mortgage? 

You wanted a straight-out answer, we know. But it depends. A straightforward application could be pre-approved within a day. On average, it’s more likely to take 3-5 business days. And if your situation is more complex, it could take up to 2 weeks. 

It helps if you know a little more about pre-approvals and the process, so here we go…

What does pre-approval even mean?

You want to buy a property. But to start house shopping, you need to know how much the bank is happy to lend you. I.e. How much you can afford.

Getting a home loan pre-approval is an obvious first step to buying a property. 

Pre-approval is like a permission slip from the bank, telling you how much they’re willing to lend you and what your mortgage repayments will be. 

With that info, you’ve got guidelines for the type of property you can buy. Handy!

The process to get pre-approval

There are different types of pre-approvals, from easy online applications to formal documents. These days, many lenders can’t fully assess pre-approval applications because they get huge numbers of applications.  

Most automatic approvals tend to be fine but some aren’t worth the paper they’re written on. To avoid hassles later and to reduce the risk of not being eligible for the home loan you need, it’s best to get a formal pre-approval written and signed by the lender if you can. 

Lucky for you, Finspo takes care of all these important details for you so you won’t have to do it alone. Only top-shelf pre-approvals here.

The pre-approval process in 3 easy steps:

Step 1. You won’t be able to avoid paperwork with a loan application.  And you’ll need to gather supporting documents like:

  • The usual forms of ID
  • Pays slips from the last 3-6 months, your most recent group certificate or payment summary if you have one, or, if you’re self-employed, financials from the last two years.
  • Statements of current debts and expenses (we’re talking rent, car loans, credit cards, Buy Now Pay Later statements, etc). 
  • Bank statements or other proof of savings and/or deposits. 

If you go through Finspo, we’ll ask for the details and docs we need, then we’ll put it all together for you—best of all, our service to you is free! 

Step 2. The lender assesses your application. Fingers crossed!

Step 3. If you succeed (huzzah!), your pre-approval is valid for a limited time—usually between 3 and 6 months. You may be able to extend the pre-approval by providing updated financial info. Otherwise, you’ll need to re-apply.

How long does it take for preapproval

But seriously, how long does it take to get pre-approved for a mortgage?

It depends on the lender and your circumstances. It usually takes between a few hours and a few weeks for the lender to complete the pre-approval after they’ve received your loan application.

Why is your pre-approval taking longer?

There’s no fun in constantly checking your phone unless you’re checking your Uber Eats delivery status.

So stop updating your emails to see if the pre-approval’s come through. It’s a drag, we know. But a longer wait doesn’t mean bad news.

Sometimes lenders can experience high demand and this may just mean it takes a little longer (they’re lenders, not The Flash). 

But your application might take longer if:

  • You’re borrowing A LOT. As in, more than $2 million. 
  • You’re borrowing more than 80% of the property’s value. A loan above 80% might call for Lenders Mortgage Insurance (LMI), which takes more time for the lender to process.
  • The property you’re buying is unique (aka rural or a small apartment, for example)
  • You’re borrowing with the support of a guarantor.
  • Your employment is unusual or irregular (as in, you’ve just started a new job or you’re on contract work). 
  • You live overseas or you’re in Australia on a temporary working visa.
  • You’re borrowing through a trust, a company, or a self-managed super fund.

Basically, if your situation is a little more complex than the average Joe, the lenders will need more time to process your application.

Does pre-approval guarantee a loan?

If only!

Pre-approval is not a guarantee that you’ll get a home loan. It just lets you know that your situation right now meets the lender’s criteria. 

If anything changes after you’ve received pre-approval, the lender might need to take another look at your application to make sure everything still adds up..

How much does pre-approval cost?

Getting pre-approval shouldn’t cost you a bean. Phew!

Are you ready to get pre-approval?

To sum up, pre-approval isn’t a guarantee that your home loan will be approved but it does give you a bit of certainty in a world where certainty means A LOT. 

With pre-approval:

  • You know what your loan and repayments could be.
  • You can confidently make an offer for a property based on your potential loan size.
  • Going through the home loan process later should be easier and quicker.

Applying for pre-approval is easier with Finspo because our experts do the heavy lifting for you. After that, it can take anywhere from a few hours to a few weeks for the lender to complete pre-approval, depending on the circumstances. 

If you want to own a property, whether that’s now, next year or in 5 years, it’s best to start the discussions as early as possible. Then you’ll know your borrowing capacity and you can set a savings goal. 


Get started and learn what it takes to enter the property market today.

How long are pre approvals taking?

A straightforward application could be pre-approved within a day. On average, it's more likely to take 3-5 business days. And if your situation is more complex, it could take up to 2 weeks.

Can you get pre

Some online lenders can pre-approve you within hours, while other lenders can take several days. The time line depends on the lender and the complexity of your finances. For starters, you'll fill out a mortgage application.

Do pre approvals get denied?

Getting pre-approved is the first step in your journey of buying a home. But even with a pre-approval, a mortgage can be denied if there are changes to your credit history or financial situation. Working with buyers, we know how heartbreaking it can be to find out your mortgage has been denied days before closing.