Getting Pre-Approved Before APRA Changes Take Effect: A Step-by-Step Guide

Published: January 20, 2026
Reading Time: 8 minutes
Location Focus: Gold Coast, QLD

Why Pre-Approval Matters Now

With APRA's new debt-to-income lending limits taking effect on February 1, 2026, now is an excellent time to get pre-approved for your mortgage. Pre-approval gives you clarity about your borrowing capacity, strengthens your negotiating position when making an offer, and ensures you're ready to act quickly when you find the right property on the Gold Coast.

This step-by-step guide will walk you through the pre-approval process and explain how working with a mortgage broker makes the process faster and more efficient.

Step 1: Assess Your Financial Situation

Before approaching a lender or broker, take time to assess your financial situation. Gather information about your income, existing debts, savings, and credit history.

Start by calculating your annual income. Include salary, rental income from investment properties, business income, and any other regular income sources. Lenders will verify this income, so be accurate.

Next, list all your debts. Include mortgage balances, investment property loans, personal loans, credit card balances, car loans, and any other regular debt obligations. Calculate your total monthly debt repayments.

Check your credit report. You can access your credit report for free from credit reporting agencies. Review it for errors and address any issues before applying for a mortgage.

Calculate your savings. Lenders want to see that you have a deposit saved. Most lenders require a minimum 5% deposit, though 10-20% is more common. Some first-home buyer schemes allow deposits as low as 5%.

Step 2: Gather Required Documentation

Lenders will request documentation to verify your financial information. Having this ready speeds up the pre-approval process significantly.

You'll need recent payslips (typically the last two months), tax returns (typically the last two years), and bank statements (typically the last three months). If you're self-employed, you'll need additional documentation such as profit and loss statements and business tax returns.

You'll also need identification documents such as a driver's license or passport, proof of residence such as a utility bill or rental agreement, and details of any existing debts such as loan statements or credit card statements.

If you're a first-home buyer, gather information about any government schemes you might be eligible for. Different states offer different schemes, and a broker can help you identify which ones apply to your situation.

Step 3: Choose Between Direct Bank Application and Broker

You have two options for getting pre-approved: apply directly to a bank or work with a mortgage broker. While both paths lead to pre-approval, they differ significantly in efficiency and outcomes.

Applying directly to a bank means contacting one lender at a time. You'll submit your documentation, wait for assessment, and receive a pre-approval from that single lender. If you want to compare options, you'll need to repeat this process with multiple banks.

Working with a mortgage broker is more efficient. A broker submits your information to multiple lenders simultaneously, typically 5-15 lenders depending on your situation. You receive pre-approvals from multiple lenders, allowing you to compare rates, terms, and conditions. This comparison ensures you get the best available terms.

Additionally, brokers understand lender policies and can match you with lenders most likely to approve your application. They also handle all communication with lenders, saving you time and stress.

Step 4: Submit Your Application

If you're working with a broker, the process is straightforward. You'll have a conversation with the broker about your situation, goals, and preferences. The broker will explain the process, answer your questions, and discuss which lenders might be best for your circumstances.

You'll provide your documentation and authorize the broker to submit your application to multiple lenders. The broker handles all the paperwork and lender communication.

If you're applying directly to a bank, you'll contact the bank, discuss your situation with a loan officer, and submit your documentation directly.

Step 5: Wait for Assessment

Lenders typically assess pre-approval applications within 2-3 business days. During this time, they verify your income, check your credit history, assess your serviceability (your ability to repay the loan), and determine your borrowing capacity.

Lenders use a serviceability assessment to determine how much you can borrow. They calculate your repayments at a higher interest rate (called the "buffer rate") to ensure you could still afford the loan if rates rise. This conservative approach protects both you and the lender.

Step 6: Receive Your Pre-Approval

Once assessment is complete, you'll receive your pre-approval letter. This letter states your approved borrowing amount, the interest rate offered, and the loan terms.

If you're working with a broker, you'll receive pre-approvals from multiple lenders. The broker will help you compare the offers and explain the differences in rates, terms, and conditions.

Pre-approval is typically valid for 90 days, giving you time to search for properties and make an offer.

Step 7: Use Your Pre-Approval to Search for Properties

With pre-approval in hand, you can search for properties confidently. You know your budget and can focus on properties within your price range. You can also move quickly when you find a property you like.

When you find a property and want to make an offer, your pre-approval strengthens your negotiating position. Sellers know you're a serious buyer with financing arranged, making your offer more attractive than offers from buyers without pre-approval.

Step 8: Transition From Pre-Approval to Full Approval

Once you've found a property and your offer is accepted, you'll transition from pre-approval to full approval. This involves a formal loan application and property valuation.

Your broker or lender will order a valuation to ensure the property value supports the loan amount. They'll also conduct a final review of your financial situation to ensure nothing has changed since pre-approval.

Full approval typically takes 5-7 business days, though it can be faster if everything is straightforward.

Special Considerations for Gold Coast Buyers

Gold Coast property buyers should be aware of a few specific considerations. The Gold Coast market is active, with strong demand and limited supply in many areas. Having pre-approval ready gives you a competitive advantage when properties become available.

Additionally, the Gold Coast has strong rental demand, making it attractive for investors. If you're an investor considering a Gold Coast property, a broker can help you structure your loan to optimize tax efficiency and cash flow.

First-home buyers on the Gold Coast should explore Queensland's first-home buyer schemes. These schemes can help reduce your deposit requirement and eliminate lenders mortgage insurance (LMI) if you're within the scheme caps.

Common Pre-Approval Questions

How long does pre-approval take? Typically 2-3 business days with a broker, sometimes longer if applying directly to a bank.

Is pre-approval a guarantee I'll get a loan? Pre-approval is a conditional commitment. The loan is approved subject to satisfactory valuation and no significant changes in your financial situation.

Does pre-approval affect my credit score? Pre-approval involves a credit check, which has a minor impact on your credit score. However, multiple pre-approval applications within a short period (typically 14 days) are treated as a single inquiry, so shopping around doesn't significantly harm your score.

Can I get pre-approved for more than I want to borrow? Yes, but it's not advisable. Borrow only what you need and can comfortably afford. Just because a lender approves you for a certain amount doesn't mean you should borrow that much.

Taking Action

If you're considering purchasing a property on the Gold Coast, getting pre-approved before APRA's new rules take effect on February 1 is a smart move. Pre-approval gives you clarity about your borrowing capacity, strengthens your negotiating position, and ensures you're ready to act quickly.

Contact a mortgage broker today to start the pre-approval process. A broker can assess your situation, explain your options, and guide you through the process efficiently.

Ready to get pre-approved? Call Frontier Finance at 0413 798 731. Our brokers will assess your situation, explain your options, and guide you through pre-approval quickly and efficiently.

Disclaimer: This article provides general information about the pre-approval process. Specific requirements, timelines, and processes vary by lender. Please consult with a qualified mortgage broker or lender to discuss your specific pre-approval circumstances.