What is the difference between Conditional and Unconditional Approval?

July 24, 2017
Lisa Elliott

There are many home loan options to consider when you want to purchase a property.  Some people prefer to obtain a pre-approval, or conditional approval, which some see as a way to strengthen your purchasing power, but this does not necessarily guarantee your loan application will be unconditionally approved when you find a property.


Conditional Approval means your application has been assessed based on the limited information you have provided.  If you have not yet found a property it is difficult for a lender to assess your full situation.  You are likely to find that a lender includes terms and conditions such as the requirement of a valuation, updated pay slips or bank statements, employment verification, a contract of sale, and any other requirement that a lender sees fit to include.  Conditional approvals are typically valid for three months, and it worth remembering that at this point, the lender has no obligation towards you or funding your application.


Unconditional Approval is where the lender has received your application and all accompanying documentation and is now in a position to fully assess your request for finance.  The lender does not require anything further from you and they can now make a decision to formally grant finance based on a particular property.  The bank has all they need and will now issue you with a notice stating that your loan has been either formally, or unconditionally approved.   The lender will then issue your loan offer document, and if you accept then you are required to sign and return the documents. The lender will check over the documents and then the application can move to settlement.


So whether you are seeking pre-approval or you have just found a property and need unconditional approval, call Mortgage Choice Brisbane North on 07 3310 8858.  From Samford Valley to Banyo, Dayboro to Chermside, Petrie to Eatons Hill and everywhere in between, we are here to help you find a home loan that suits you.




Posted in: Home loans

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