Why Borrowers Are Getting More Pre-Approvals Before House Hunting in 2026!

More home buyers are securing a pre-approval before stepping into the property market — and this trend is becoming even stronger heading into 2026. With rising competition and tighter lender policies, having a pre-approval isn’t just helpful anymore… it’s becoming essential.

Here’s why.

1. Sellers and Agents Prefer Pre-Approved Buyers

Real estate agents are increasingly asking, “Do you have pre-approval?” before even accepting offers A pre-approval shows:

• You’re serious

• You have verified borrowing capacity

• Your finance position is stable

In a competitive market, this can help your offer stand out.

2. Lenders Are Testing Stability More Closely

Many lenders are now:

• Assessing overtime and bonuses more conservatively

• Checking gaps between jobs

• Reviewing bank statements more deeply

• Asking for updated pay slips more frequently

A pre-approval gives borrowers a clear picture of where they stand — before they commit to a property.

3. Property Prices and Interest Behaviours Are Changing Quickly

Prices in some areas are rising while others are stabilising. Because borrowing capacity changes with:

• Updated living expenses

• Income changes

• Lender policy shifts

• Suburb risk ratings

…pre-approval helps buyers know their safe budget and avoid overstepping.

4. Pre-Approval Reduces Risk of Finance Falling Over

Unexpected issues can arise during the final approval stage:

• Undisclosed credit enquiries

• High discretionary spending

• Missed repayments

• New liabilities

• Changes in employment

With a pre-approval already assessed, many of these risks are identified early, saving time and stress.

5. Helps With Planning Deposit, Costs & Negotiation

A strong pre-approval helps you understand:

• Stamp duty

• LMI (if applicable)

• Deposit requirements

• Monthly repayments

• Fees and upfront costs

This gives you confidence when negotiating — and prevents surprises later.

6. Some Properties Require Pre-Approval Before You Can Even Offer

This is becoming more common for:

• Off-market listings

• Hot suburbs

• New developments

• Auction campaigns

Agents want buyers who can move quickly.

7. Pre-Approvals Are Becoming More Detailed

Many lenders now require:

• AVOI (Advanced Verification of Identity)

• Full bank statements

• Employment verification

• Expense checks

This means pre-approvals are more accurate — and more valuable — than ever.

Final Thought

Heading into 2026, buyers who are pre-approved have a major advantage:

✔ Clear borrowing limits✔ Stronger negotiation power✔ Faster finance process✔ Lower risk of delays or declined finance

Getting prepared early is the smartest step when entering the market.