It’s a letter from your lender that states how much they’re likely to let you borrow based on your financial situation, objectives and needs.
Know how much you could spend
Being confident about how much you could borrow means you can narrow down your property search to homes in your price range.
Act quickly when you find a property
It shows the seller that you’re making a serious offer, and gives them peace of mind that you can afford the property.
It’s especially a good idea to get conditional approval before bidding at auctions in Melbourne and Sydney.
It’s a pretty straightforward process. A Home Finance Manager or Broker can arrange it for you. You’ll need ID, income evidence, and a run down of your expenses, assets (what you own) and liabilities (your personal debt).
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