What is home loan ‘pre-approval’?

What is home loan ‘pre-approval’?

                                   

A home loan pre-approval lets you know much you could borrow before you start looking at properties to buy. It can also speed up the process for getting a fully approved loan, once you’ve found a home you want to buy.

A pre-approval is usually conditional, which means your lender may set certain requirements that need to be met before the loan can be fully approved. These conditions will be outlined in your pre-approval or letter of offer. Pre-approvals are valid for a limited time (for example, 60 days), and if your financial situation changes during that period, you’ll need to let your lender know straight away.

Why should I apply for a home loan pre-approval?

✔ Know your budget
A pre-approval gives you a realistic price range to work within, so you can avoid falling in love with homes that are out of reach.

✔ Show you’re serious
Agents and sellers will take your offer more seriously if you’ve already got pre-approval — it shows you’re ready to go.

✔ Speed things up later
You’ve already done a lot of the paperwork upfront, which makes the final approval process quicker once you find the right home.

✔ Get expert support early
When you apply for pre-approval, you’ll be working with a home lender who can answer your questions and guide you through the next steps.

What do I need to apply?

To assess your pre-approval application, you'll need to provide documentation that enables the lender to understand your current financial picture:

  • Proof of income – recent payslips or income statements
  • Bank statements – to show your everyday spending and savings
  • Details of your debts – including credit cards, personal loans, or buy-now-pay-later
  • ID – such as your driver licence or passport
  • Details of your deposit – where it’s coming from (savings, KiwiSaver, or a gift from a family member)

Your bank or credit union might also ask for other documents depending on your situation.

Helpful tips before you apply

  • Check your credit report – it’s free, and it helps to know what lenders will see
  • Don’t take on new debt – like car loans or credit cards, as this can affect how much you can borrow
  • Be honest about your finances – we’re here to help, and the more accurate your info is, the better advice we can give
  • Talk to us early – even if you’re not quite ready to buy, it’s worth having a chat. We can help you make a plan and get you on the right track.

Ready to take the first step?

Whether you're just starting to think about buying or you're already on the hunt, getting pre-approved is a great way to be prepared and confident.

Applying for a home loan pre-approval with Unity is easy. Just download our full application form below, fill it out with your details, and email it to homeloans@unitymoney.co.nz to get started.

Apply now

More frequently asked questions about home loans

You may find the answer on one of the pages below: