What if I have pre-approval ?
Pre-approval is when a lender indicates they ’ re satisfied you meet their criteria to borrow a specified amount . This is very helpful in refining your property search and bidding with confidence . However , something to keep in mind is that pre-approvals are conditional . If your circumstances change or interest rates increase , it could impact your pre-approval . While one increase in the cash rate is unlikely to void your pre-approval , if the cash rate increased three times during the period of your preapproval ( which is usually up to around three months ), you may find the amount the lender is willing to lend you has decreased .
Because of this , it ’ s a good idea to get pre-approval when you ’ re likely to start making offers rather than waiting until the end of the pre-approval period . If something has not become available until later in your pre-approval period , speak to your broker to find out if it could have been impacted .
The important thing to keep in mind is that increasing interest rates do not mean doom and gloom . We have a panel of over 60 lenders and can find the right one for your needs . There are still competitive deals available , and we can help optimise your borrowing power through a number of steps and matching you with the right lender .
Andrea McNaughton Managing Director Loan Market
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