What is the difference between conditional and unconditional approval?

June 24, 2017
Sandra Heinzlmeier

One of the questions we get a lot from our customers is regarding the difference between conditional and unconditional approval of home loans. Below you can find information and a short summary about what differentiates the two forms of loan approval.

Conditional Approval is when your home loan application has been approved subject to further conditions being satisfied. These conditions can include items such as a valuation report (if not already provided up-front), Lenders Mortgage Insurance approval (if applicable), and sometimes further documents required to complete a full assessment of the application. Once all conditions have been satisfied, your loan application will be placed in a queue to be re-assessed for unconditional approval.

Unconditional Approval or Formal Approval is when your home loan has been fully approved and is not subject to any conditions. The next step will be the lender preparing the loan and mortgage documents for you to sign and return to the lender. Some of these documents may need witnessing by a JP or a Comm Dec, such as the mortgage documents. We have several Comm Decs in our office to make this step as easy as possible. Once all documents have been signed and returned to the lender, your loan application can proceed to settlement. Congratulations!

If you would like any further information, have any questions about the subject or if you would like to make an appointment with one of our Mortgage Brokers please call our Indooroopilly office on (07) 3878 7777 or pop in and say hi at our kiosk, located on level 2 of Indooroopilly Shopping Centre. We can’t wait to hear from you!


Posted in: Home loans

Contact us today.

Additional Comments? * :