What is pre-approval, conditional and unconditional approval? What are the differences?

Pre-approval is something many home buyers or investors get before they start house hunting. With pre-approval the lender has given you an estimation of how much you can borrow. Pre-approval isn’t a guarantee that you will be approved for a loan, but it gives you an idea what you can borrow so you can budget.

Conditional approval is when approval has been provided on the basis that certain outstanding conditions are met before formal approval can be given.

Unconditional approval is when you have applied and been approved for a loan. Unlike pre-approval, unconditional approval is a guarantee that you will be able to borrow a certain amount.

Have Questions?

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How are home loan repayments calculated?

Home loan repayments are typically calculated daily and paid monthly, based on the interest rate for the chosen term for the interest portion of your repayment. For your principal repayment, your initial borrowing rate is divided by the months or fortnights in your loan term. These two amounts are then added and repayed on your chosen schedule. Bluestone’s repayment calculator is only a guide, particularly because we assume your interest rate will remain fixed through the whole term of the mortgage, which is often not the case in Australia.

What other tools do you have?

We have a range of resources to help you understand your mortgages options in our insights section. We’re also working on a few more useful calculators for you in the background.

Does your repayment calculator consider any impact from an offest account? What about lump sum repayments?

At the moment, no, our calculator does not consider the impact of an offset account on interest accrued. So if you have an offset, assume you’ll be a little bit quicker to pay off your mortgage than the projections we share in the graph. For accurate repayment insights that consider strategies like paying lump sums and utilising an offset account, we recommend speaking to your broker or seeking professional financial advice.