Does pre-approval affect my credit score?

Applying creates a credit enquiry on your file, and one or two enquiries have very little effect on a healthy credit file. The real risk is applying to several lenders in a short period, which can read to other lenders as credit stress and work against you. That is exactly why we compare the panel for you first and lodge with a single lender you are genuinely strong for. We also read your credit file before lodging, so anything that needs clearing is dealt with beforehand rather than discovered later.

Can I make an offer without pre-approval?

Nothing legally stops you, but it puts you at a disadvantage. In a competitive market many agents will not present an offer without evidence of finance, and a vendor will often choose a lower offer from a pre-approved buyer over a higher one that is not funded. You can offer subject to finance, which protects your deposit, but vendors discount that certainty and it can cost you the property. If you are buying at auction, a pre-approval is effectively essential, because the contract becomes unconditional the moment the hammer falls.

What deposit do I need in Penrith?

A deposit of 20% of the purchase price avoids lenders mortgage insurance. Deposits of 5% to 10% are possible with lenders mortgage insurance or under a first home buyer scheme, and a family guarantor can let you buy with a small deposit without paying that insurance at all. On top of the deposit you need stamp duty, conveyancing and inspection costs, so the real cash requirement is higher than the deposit alone. Because prices differ across Penrith, Kingswood, Cranebrook and Emu Plains, we work from the actual suburb and contract price rather than a rule of thumb.

For most home loan purchases there is no broker fee, because the lender pays us once your loan settles. If a fee ever does apply to your situation, we tell you in writing before any work begins and explain exactly what it covers, so you will never receive a surprise invoice. Borrowly Finance is a credit representative, registration 578 333, and an MFAA member, number 655 794.

Pre-approvals in Penrith & Western Sydney

Get pre-approved fast in Penrith

A written borrowing number in days, not weeks, so you can shop with confidence, bid without hedging, and know exactly what the lender will actually approve. We compare 25+ lenders and prepare the file properly the first time.

Book a free pre-approval chat Call 0450 906 575

Days to a decision, typically: 1-3Days to a decision, typically
Lenders compared: 25+Lenders compared
Broker fee on most loans: $0Broker fee on most loans
Months of validity: 3-6Months of validity

01 / What lenders look for

Three things decide your pre-approval

Every lender weighs the same three things, but they weigh them differently. Knowing which one is holding your number back is what turns a vague maybe into a real approval.

Deposit: how much, and where it came from

Most lenders want at least 5% to 10% of the purchase price. Below 20% you usually need lenders mortgage insurance, which adds to the cost and can be added to the loan rather than paid upfront. Lenders also look at how long the money has been in your account: savings built over time read as genuine savings, while a recent lump sum, a gift or a bonus often needs written evidence. The deposit is only part of the cash you need, because stamp duty and inspection costs sit on top of it.

Income: whether you can carry the repayment

Serviceability is assessed against a benchmark rate above the rate you are actually offered, and against the lender's own living-expense figures rather than the budget you say you run. Permanent employment past probation reads more favourably than a new contract or a probationary period. Overtime, commissions, bonuses, rental income, child support and family help are each treated differently from lender to lender, which is one of the biggest reasons two borrowers qualify for very different amounts. If you are self-employed, most lenders want two years of notices of assessment, while a smaller group will accept business activity statements or bank statements instead.

Liabilities: everything you owe, including what you are not using

A credit card limit is often counted as a notional repayment even when the balance is zero, so three unused cards can quietly cost you borrowing power. Buy-now-pay-late plans, personal loans, car loans, HECS-HELP and any guarantee you have given are all counted. Payment defaults, arrears or missed utility bills in the last few years can see a file declined no matter how strong the income is. We read your credit file before anything is lodged so there are no surprises at approval.

Serviceability is the number that moves

Two borrowers with the same wage and the same deposit can be approved for very different amounts, usually because of liabilities and living expenses rather than income. Clear the right things first and the borrowing power often rises.

Try the calculator Book a free pre-approval chat

02 / Documents and timelines

The checklist, and how long each stage actually takes

Most delays are not the lender being slow. They are a missing payslip, a statement with the wrong page, or a deposit that cannot be traced. Gather it once, properly, and the file moves.

If you are employed

Last two to three payslips and the most recent income statement from myGov
Two months of personal bank statements, including the savings account
Two forms of photo identification
Employment contract or a letter confirming a permanent role and start date
Balances and limits for every credit card, loan and buy-now-pay-late plan
Rental ledger if you currently rent, or a letter from your property manager
Evidence of any gift, bonus or inheritance going toward the deposit

If you are self-employed or a contractor

Two years of notices of assessment for yourself and any entity
Two years of business activity statements
Two months of business and personal bank statements
Company or trust tax returns and financials where an entity is involved
An accountant letter confirming profit, drawings and director payments
Contractor agreements, ABN registration or evidence of ongoing work

Some lenders will assess this income from business activity statements or bank statements instead of tax returns. Getting that lender right usually matters more than a slightly lower rate.

1-3 daysPre-approval decision
Once documents are complete most files are conditionally approved within one to three business days, and a straightforward salaried file can be same day.
1-3 weeksFull credit approval
After a property is under contract the lender verifies everything and assesses the valuation. This is the stage where a well-prepared file saves the most time.
21-45 daysContract to settlement
The usual window between exchange and settlement in NSW, during which we coordinate discharge, insurance and the release of funds with your solicitor.
3-6 monthsPre-approval validity
Most lenders hold a pre-approval for three to six months. We diarise the expiry so it never lapses in the middle of a sale.

Not sure what you can borrow yet? The free borrowing power calculator gives you an honest starting range, and our blog covers the buyer mistakes that cost people deposits.

03 / Plain English

Conditional vs unconditional approval, explained

These two words decide how much weight an agent gives your offer. Here is the difference, without the jargon.

Conditional approval

Often called an approval in principle

Issued quickly and based on the income, expenses and deposit you have stated. It is subject to verification: documents checked, employer contacted, credit file read and sometimes a valuation of the property. The amount and the terms can change if what the lender finds does not match what was declared. It is enough to shop with, to price your search honestly and to make an offer, but it is not a promise of funds.

Unconditional approval

Full approval for a specific property

Your file has been assessed, verified and approved against a named property and purchase price. Only the legal completion of the purchase and a satisfactory valuation remain. This is the evidence an agent or vendor's solicitor wants to see before choosing your offer over a competing buyer, and it is what lets you waive a finance clause with any confidence.

Conditional in a sentence

You qualify for this amount, and we will confirm it by checking your documents, your credit file and the property.

Unconditional in a sentence

This property has been approved and the money is ready for settlement, subject only to the paperwork completing.

How to close the gap faster

Supply the full checklist up front rather than one document at a time
Keep the deposit traceable in one account from the day you start
Do not open new credit cards, car loans or buy-now-pay-late plans
Tell us about a job change, a new baby or a raise before we lodge

04 / First home buyers

The schemes you may qualify for, and how we build the file

Most first home buyers find out about a concession after they have signed. We check them before, because the deposit, the contract date and the property type all change what is available to you.

Which concession or scheme applies to this contract, at this price
Whether the source of your deposit will satisfy the evidence rules at each lender
How long the approval will hold against your auction or exchange date

Based in Penrith

Jason Fryer works with first home buyers, upgraders, investors and self-employed borrowers across Penrith, the Blue Mountains and Western Sydney, in person or by phone and video.

Read the about page

NSW first home buyer stamp duty support

Purchasing in NSW, first home buyers may pay no stamp duty or a reduced amount depending on the price of the property, and the rules differ between an existing home and a newly built one. We check the threshold against the contract price before you sign, because the concession is assessed on the contract, not on what you can afford.

First Home Guarantee

A federal scheme that lets eligible buyers purchase with a deposit of around 5% without paying lenders mortgage insurance, subject to income and price caps and to places being available in the current intake. We apply through participating lenders and time the submission to the scheme window.

Family Home Guarantee

For eligible single parents buying a home, this works on the same principle as the First Home Guarantee with a smaller minimum deposit and its own allocation of places. We check your eligibility and the property price cap before you fall in love with the wrong home.

Shared equity and new home incentives

State shared equity programs and new home stamp duty exemptions can change what you can afford, and each has its own rules about timing, occupancy and resale. Where one suits your situation we explain the trade-off, not just the benefit.

Guarantor options

A family pledge or a release of equity in a parent's property can let you buy with a small deposit and avoid lenders mortgage insurance entirely. Structured properly it protects the family guarantor and keeps their own borrowing capacity intact.

How we structure your application

We check scheme eligibility and deposit source before you sign, so the contract date and the concession line up.
We pick the lender whose underwriting reads your income properly, not the one with the lowest headline rate.
We set the offset, redraw and fixed or variable split around your plans for the next two to five years.
We time the application so your pre-approval is current when you bid and does not expire mid-sale.
We keep the title and deposit direction correct for tax and for whatever you buy next.
We tell you the borrowing number honestly, including the buffer, before you shortlist a single property.

Book a free pre-approval chat Call 0450 906 575

05 / The process

Four steps from a free chat to a pre-approval in hand

Nothing is lodged until you have seen the rate, the fees and the structure in writing and said yes.

01
Free chat
Fifteen minutes by phone, video or over coffee in Penrith. We cover your goal, timing, deposit, employment type and any credit history, and tell you straight whether a pre-approval is realistic right now.
02
Documents prepared
You get a checklist written for your situation, not a generic list. We review every page before it goes anywhere, so the lender is never left chasing you for a missing statement.
03
Lender shortlist and lodgement
We compare 25+ lenders, tell you which one suits your file and why, and show you the rate, fees and proposed structure in writing before anything is submitted.
04
Pre-approval in hand
You receive a written pre-approval to show agents and to sell your existing home with, then we manage full approval, valuation and settlement through to completion.

Book a free pre-approval chat Call 0450 906 575 Check your borrowing power

Questions

Pre-approval questions, answered plainly

Most lenders hold a pre-approval for three to six months, and a few issue them for ninety days. If your income, debts and credit position have not changed, an expired pre-approval can usually be reissued quickly rather than started from scratch. What does matter is a material change: a new car loan, a fresh credit card, a new employer or a change in your dependants should all be checked before you rely on the original number. We diarise your expiry date and flag it before it lapses.

Read all FAQs

Next step

Know your number before you fall in love with a home

One free chat, 25+ lenders compared, a written pre-approval you can bid with, and no obligation to proceed.

Book a free pre-approval chat Call 0450 906 575 Borrowing power calculator

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General information only. It does not take into account your objectives, financial situation or needs. Consider whether the information is appropriate for you and read the relevant credit guide and terms before making a decision. Lending criteria, fees and charges apply.