What is the difference between Conditional Approval & Unconditional Approval?

March 20, 2017
Nicole Spiteri

We are regularly asked by our clients what is the difference between conditional approval & unconditional approval, so listed below are the main differences:



Your loan application has been approved subject to specified terms & conditions that MUST be met prior to your loan reaching Unconditional Approval, however the lender has no obligation towards you to proceed to unconditional approval if the outstanding requirements are not met.

The terms & conditions can range from further supporting documents relating to your income or assets & liabilities, a valuation of your security property or simply further information required by the lender.

Each conditional approval is unique to your loan application, the lender requirements & the supporting documents provided when submitting your application.


UNCONDITIONAL APPROVAL (Also known as Formal Approval)

If your loan has reached this stage, Congratulations! Your loan has been fully approved & is not subject to any terms and conditions.

Generally, at this stage the lender will be preparing mortgage documents for you to sign & return to accept all facets of the loan.

Once these signed documents are checked over by the lender & all documentation is in order your loan application will proceed to settlement. 

Posted in: Home loans

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