Conditional Versus Unconditional Approval

June 19, 2017
Daniel Meade

Conditional Versus Unconditional Approval

What’s the difference?

 It can be quite easy to make the mistake of thinking your loan has been approved when a bank tells you the loan has been conditionally approved. This is not the case; Conditional approval is only the first step toward your loan application being unconditionally or formally approved. Your loan is not formally approved until you receive a letter from the bank stating so.


Conditional Approval -

When receiving a conditional approval, this may only mean that the banks computer system has assessed the figures input and is now ready to be manually assessed by a credit assessor or the application may have been preliminarily assessed and further information or outstanding items may be required.

Some of these items may include –

-        Updated Payslips

-        Employment Verification

-        Property Valuation

-        Fully signed and dated contract

-        And any other number of conditions the bank will check before reaching formal approval.


Unconditional Approval –

Unconditional approval is when the bank has everything they need and has been verified to be able to grant formal approval in writing. This means the bank has formally assessed the application and all required paperwork and the bank has no further conditions. Once receiving unconditional approval, the bank will formally grant finance based on the property being used for security.

When signing a contract to purchase a property, the buyer should always sign the contract subject to finance. Once receiving the letter for unconditional approval, this should also be forwarded to the buyer and seller’s solicitor to meet the finance clause of the contract.  


At Mortgage Choice Geebung John and Daniel strive to provide the best customer service and provide comfort in obtaining an unconditional approval. They will guide you through each step of the loan application all the way to settlement and beyond.

Make a step in the right direction today and contact Mortgage Choice Geebung on 07 3833 9666 to ensure what you’ve been told in the past is in fact true and accurate.


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