Pre-approval for a home loan in Victoria is an initial assessment by a lender confirming the maximum amount they’re willing to lend you, based on your financial situation. It’s not a guarantee of finance, but it demonstrates your borrowing capacity to potential sellers.
As of December 2025, pre-approval is increasingly common in Melbourne’s competitive Eastern Suburbs market. Buyers often present pre-approval as part of their offer, particularly for desirable properties near schools in areas like Balwyn and Doncaster. This signals to sellers – and through us at Fletchers – that the buyer is financially ready to proceed. Currently in Melbourne, a typical campaign runs for 4-6 weeks, and buyers with pre-approval can act decisively during the inspection period. While not mandatory, lacking pre-approval can put buyers at a disadvantage, especially in 2026 where moderate property value growth of 3-6% is anticipated. Sellers should be aware that pre-approval doesn’t replace formal loan approval, which is conditional on a property valuation and legal checks. We often see buyers securing pre-approval before actively inspecting properties, allowing them to confidently participate in auctions and negotiations. The process typically involves providing lenders with documentation like payslips, bank statements, and identification.
Essentially, pre-approval provides buyers with a clear understanding of their budget and strengthens their position when making an offer on a property.