Question 1

Is using a home loan calculator the same as getting a pre-approved home loan?

Accepted Answer

No. Online loan calculators estimate repayments based only on the total loan, term and interest rate entered. They do not assess personal financials and credit scores. Conditionally approved loans include a full assessment of the applicant's financials and review of their credit score.

Question 2

What is a pre-approved home loan?

Accepted Answer

Pre-approval of property finance is a loan that is conditionally approved before a property is purchased. Pre-approval is given based on the estimate of the loan required and the applicant's financial position and current interest rates.

Question 3

Will I get the same interest rate with pre-approval as with an after-purchase loan?

Accepted Answer

Yes. The interest rates offered with pre-approval are the same as when applying after a purchase is made, based on the current rate market. The rate offer would be based on the same criteria. The exception being if rates change between the time that an applicant would pre-apply compared with if they applied after a purchase.

Question 4

What is required to get a pre-approved home loan?

Accepted Answer

For conditional pre-approval, applicants will need to complete the full loan application form. This includes providing physical identification, residency details, income, debts and expenses with documentation including payslips, bank statements and tax returns.

Question 5

Am I committed to proceed with pre-approved property finance?

Accepted Answer

No. If a property purchase does not proceed, conditionally pre-approved loans expire at the designated date.

Question 6

Is pre-approval available for all types of property finance?

Accepted Answer

Yes. Conditional pre-approval can be obtained for owner-occupiers, investors, first-home buyers, refinancers, and for buyers requiring low deposit home loans.

Question 7

Will I know my monthly repayments if I get pre-approved?

Accepted Answer

Yes. Pre-approval provides buyers with their interest rate and their monthly repayments based on current rates and the loan total requested in their application.

Question 8

Why is a pre-approved loan called conditional approval?

Accepted Answer

A pre-approved loan is referred to as â€˜conditional approval' as the details of the property to be purchased will be required for the final approval stage. The final purchase price may alter the loan amount requested at pre-approval. This may alter the rate and repayments.

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