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Pre Approval Home Loans

When you start house hunting, it can be difficult to understand your financial situation, options and when it is appropriate to make an offer of a home.

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Obtaining pre-approval for your home loan gives you an understanding of your borrowing power and equips you with the confidence to make an offer on your dream home before someone else does. Here is our guide to all things home loan pre-approvals.

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Start the pre-approval on your desktop or mobile

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Fill out the
online form

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You’ll receive a confirmation on screen and via email

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One of our team will be in touch to check in and see if you’d like to proceed

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What is home loan pre-approval
(conditional approval)?

Home loan pre-approval, also referred to as conditional approval, is when a lender provides an estimate of how much money they are willing to lend to you for a property, given that certain conditions are met.

Pre-approvals are generally fee-free. Whilst no commitment is made by a home loan provider at this stage, pre-approval provides a clear idea of borrowing power and equips you with greater confidence to bid on properties during the house hunting process.

Pre-approvals are subject to certain conditions which must be met for home buyers to receive a home loan. For example, home buyers may be required to pay off any existing financial obligations or provide documentation such as a satisfactory valuation on the property they are looking to purchase.

An unconditional approval is the end goal for all home buyers. Given that all pre-approval conditions have been satisfied, our loan specialists will send you a notice of unconditional approval which signifies that a home loan has formally been granted! At this stage, there are no further conditions for you to meet and it’s time to celebrate winning your dream home or investment property!

Conditional approval vs pre-approval vs approval-in-principle

Conditional approval, pre-approval and approval-in-principle are different terms used to describe the same thing. In essence, they entail an enquiry from you regarding your financial position and an indication from us on how much you can potentially borrow.

At Homestar Finance, we refer to this stage as ‘pre-approval‘.

Your home loan options

Explore our market-leading range of mortgage options, rates and features: 

Star Gold

Variable principal & interest

5.98%

Interest rate p.a.1a

5.98%

Comparison rate p.a.1a,2


  • Zero fees*
  • Up to 70% LVR
  • Offset account
  • Weekly, fortnightly or monthly repayments
  • Visa Debit card provided with ATM access
  • Unrestricted extra repayments
  • Free online redraws
  • Multiple loan splits possible
  • Pay anyone, BPAY® and digital wallet payments
  • Schedule recurring payments or transfers
Find out more

Star Choice

Principal & interest

6.75%

Interest rate p.a.1a

6.42%

Comparison rate p.a.1a,2


  • Revert rate features
  • Up to 90% LVR
  • Offset account
  • Weekly, fortnightly or monthly repayments
  • Visa Debit card with ATM access
  • Unrestricted extra repayments
  • Free online redraws
  • Multiple loan splits
  • Pay Anyone, BPAY® and digital wallet payments
  • Schedule recurring payments or transfers
  • Lender Paid LMI
Find out more

Star Classic

Variable principal & interest

6.35%

Interest rate p.a.1a

6.38%

Comparison rate p.a.1a,2


  • Up to 80% LVR
  • Offset account
  • Weekly, fortnightly or monthly repayments
  • Visa Debit card with ATM access
  • Unrestricted extra repayments
  • Free online redraws
  • Multiple loan splits
  • Pay anyone, BPAY® and digital wallet payments
  • Schedule recurring payments or transfers
Find out more

Star Classic Fixed

Fixed principal & interest

6.95%

Interest rate p.a.1a

6.79%

Comparison rate p.a.1a,2


  • Up to 80% LVR
  • Weekly, fortnightly or monthly repayments
  • Extra repayments up to 20k p.a.
  • Free online redraws
  • Multiple loan splits
  • Pay anyone, BPAY® and digital wallet payments
  • Schedule recurring payments or transfers
Find out more

Star Essentials

Variable principal & interest

6.25%

Interest rate p.a.1a

6.28%

Comparison rate p.a.1a,2


  • Up to 80% LVR
  • Weekly, fortnightly or monthly repayments
  • Unrestricted extra repayments
  • Free online redraws
  • Multiple loan splits
  • Pay anyone, BPAY®  and digital wallet access
  • Schedule recurring payments or transfers
Find out more

Star Classic

Variable principle and interest

6.55%

Interest rate p.a.1b

6.58%

Comparison rate p.a.1b,2


  • Up to 80% LVR
  • Offset Account
  • Visa Debit Card Provided with ATM Access
  • Unrestricted Extra Repayments
  • Free Online Redraws
  • Pay Anyone & BPAY® Available
  • Multiple Loan Splits Possible
  • Weekly, Fortnightly or Monthly Repayments
  • Schedule Recurring Payments or Transfers
Find out more

Star Classic

Variable interest only

6.95%

Interest rate p.a.1b

7.03%

Comparison rate p.a.1b,2


  • Up to 80% LVR
  • Offset Account
  • Visa Debit Card Provided with ATM Access
  • Unrestricted Extra Repayments
  • Free Online Redraws
  • Pay Anyone & BPAY® Available
  • Multiple Loan Splits Possible
  • Monthly Repayments Only
  • Schedule Recurring Payments or Transfers
Find out more

Star Classic Fixed

Fixed principal & interest from

7.35%

Interest rate p.a.1b

7.01%

Comparison rate p.a.1b,2


  • Up to 80% LVR
  • Extra Repayments up to 20k p.a.
  • Free Online Redraws
  • Pay Anyone & BPAY® Available
  • Multiple Loan Splits Possible
  • Weekly, Fortnightly or Monthly Repayments
  • Schedule Recurring Payments or Transfers
Find out more

Great rates. Great service. Where our customers feel at home.

We're an award winning lender

Homestar Finance has been providing Australians with competitive and customer-focused home loan solutions since 2004.

Our dedicated team of loan specialists are there to support you through your home loan journey, and take the time to get to know you so we can offer our customers a personalised service – making it easy to find a home loan solution that suits you.

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Mozo Experts Choice Award 2023

Investor Home Loan

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Canstar Outstanding Value Home Loan Awards 2022

Home Lender

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Canstar Outstanding Value Home Loan Awards 2021

Variable Home Lender

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Canstar Outstanding Value Home Loan Awards 2022

Variable Home Lender

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Canstar Outstanding Value Home Loan Awards 2021

Investment Variable Home Lender

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Canstar Outstanding Value Home Loan Awards 2022

Investment Variable Home Lender

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The benefits of our
pre-approval process

  • Take the stress out of your home loan journey
  • Feel confident about your financial situation, whether refinancing or purchasing
  • Takes only 5 minutes to complete
  • You can save and finish at any time
  • No paperwork involved – your application is completely online
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Not ready to complete your pre-approval online?

If you don’t quite feel ready to complete your pre-qualification online, feel free to call us on 1300 231 938, fill in the enquiry form below or chat with us online – our sales assessment team will go through the details with you. Please be assured that submitting an enquiry will not affect your credit rating.

Do I need pre-approval for my home loan?

Whilst pre-approval is not compulsory, it can help to reduce stress and anxiety during your home buying journey by helping you:

  • Understand your borrowing capacity
  • Conduct your property search more efficiently and effectively, knowing which homes are within your budget
  • Make an offer on a home with more confidence
  • Prove to real estate agents that you are a serious buyer
  • Potentially speed up your final loan application once your offer has been accepted
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How long does a pre-approval take?

The time it takes to undergo the pre-approval process depends on your individual circumstances. Generally, the process can take anywhere between a few hours to a few weeks.

Call, chat or submit an enquiry with us and our sales assessment team will be able to give you an estimated time for your pre-approval process.

How long does pre-approval last?

Depending on the lender, your pre-approval expires within three to six months, provided that your situation does not change during that period.

Should your financial circumstances (such as your type of employment or income) change significantly from the time that you first applied for pre-approval, the lender may re-evaluate the conditional approval with the option not to settle the final approval.

What does the home loan pre-approval process look like?

The pre-approval application process will depend on each lender. With Homestar Finance, the entire process of receiving a pre-approved home loan is completed in 3 simple steps, taking the stress out of your property buying journey.

Pre-approval application form

Apply online by filling out our pre-approval application form, where you will be asked for information such as your proof of identity, employment, income, expenses, savings and the price range and location of the property you are looking for. Our pre-approval application takes only 5 minutes to complete. Once your application is submitted, a confirmation email will be sent to you.

happy couple on their phones

How do I apply for pre-approval for a home loan?

To apply for pre-approval for a home loan, simply fill out the application form. Alternatively, you can call, chat or enquire with us and our sales assessment team will guide you through the process.

Fill out application form

Information verification and eligibility check

Our loan specialists will verify your information, conduct a credit check with an external credit bureau and check your eligibility against our lending criteria. We will then meet with you to discuss your needs and help you select a home loan that’s right for you.

checklist with cursor icon

Credit checks
A credit check is not completed until an application is submitted.

bank paper with checkmark icon

Income verification
Information about your income is not verified until an application is submitted.

clipboard with the text loan icon

Eligibility
For your loan to meet our serviceability and lending criteria, terms and conditions apply.

Pre-approval

If you are eligible for a home loan, we will issue you with a written pre-approval. Enjoy shopping for your dream home with ease!

If you don’t quite feel ready to complete your pre-qualification online, feel free to call us on 1300 231 938, fill in the enquiry form below or chat with us online – our sales assessment team will go through the details with you. Please be assured that submitting an enquiry will not affect your credit rating.

woman hand shaking another person

Pre-approval application form

Apply online by filling out our pre-approval application form, where you will be asked for information such as your proof of identity, employment, income, expenses, savings and the price range and location of the property you are looking for. Our pre-approval application takes only 5 minutes to complete. Once your application is submitted, a confirmation email will be sent to you.

happy couple on their phones

How do I apply for pre-approval for a home loan?

To apply for pre-approval for a home loan, simply fill out the application form. Alternatively, you can call, chat or enquire with us and our sales assessment team will guide you through the process.

Fill out application form

Information verification and eligibility check

Our loan specialists will verify your information, conduct a credit check with an external credit bureau and check your eligibility against our lending criteria. We will then meet with you to discuss your needs and help you select a home loan that’s right for you.

checklist with cursor icon

Credit checks
A credit check is not completed until an application is submitted.

bank paper with checkmark icon

Income verification
Information about your income is not verified until an application is submitted.

clipboard with the text loan icon

Eligibility
For your loan to meet our serviceability and lending criteria, terms and conditions apply.

Pre-approval

If you are eligible for a home loan, we will issue you with a written pre-approval. Enjoy shopping for your dream home with ease!

If you don’t quite feel ready to complete your pre-qualification online, feel free to call us on 1300 231 938, fill in the enquiry form below or chat with us online – our sales assessment team will go through the details with you. Please be assured that submitting an enquiry will not affect your credit rating.

woman hand shaking another person

Found a property?

Let us know and we’ll guide you in placing a final loan application to receive formal approval of your home loan.

What do I do if my loan is
declined after pre-approval?

Should your home loan be declined, it is wise to pause from immediately applying for home-loan pre-approval from a different lender or multiple lenders as all applications will be recorded on your credit history. Rather, you may need to:

  • Provide more supporting documents regarding your financial situation
  • Stay in your current employment position during the pre-approval application process and during the transition from home loan pre-approval to unconditional approval
  • Improve your credit score over the next few months
  • Search for a property that meets the lending criteria

If you were offered pre-approval, our loan specialists will be able to help you identify why your application for full approval was denied and guide you towards next steps.

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Home loan products with
great features and the lowest rates

Take advantage of our award-winning Homestar Finance low home loan rates and personalised customer service! Make the switch to Homestar and start saving today.

Learn more
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Get pre-approval for your

home loan online

Your home loan pre-approval application can be done completely online via our form with no paperwork involved! The form takes only 5 minutes to complete, and you can save your progress and finish at any time.

Apply now
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Let’s get to know each other!

Talk to us about your home loan needs and we will package up a home loan with the features you want and tailor the rate to your circumstance.

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    Understanding more about home loan pre-approval

    When should I apply for pre-approval?

    It is important to note that if you apply for pre-approval multiple times or from multiple lenders, a credit check will be conducted each time which may have negative impacts on your credit score. As pre-approval is valid for a number of months, it is best not to apply too early.

    An appropriate time to apply would be when you have started house hunting and have a general idea of the price range and location of your new property. It would also be good to review your finances and create a budget by compiling your income, expenses, assets and financial obligations. From there, you can figure out an estimate of how much you may be able to borrow using our Borrowing Power Calculator. You can also figure out your capacity to repay a home loan using our Weekly & Fortnightly Home Loan Repayment and Monthly Home Loan Repayment Calculator.

    Can I put in an offer if I'm buying privately?

    Provided that the seller and their sale conditions allow buying privately, you are free to place an offer. If you do, we recommend that you ensure purchase conditions are set such that your offer is made ‘subject to finance’. This protects you from any risks by allowing you to withdraw your offer should your lender decline your home loan application. Other conditions can also be set, such as a ‘subject to building and pest inspections‘ condition.

    Can I bid on my dream house at auction?

    Yes. With your home loan pre-approval in hand, you will have greater confidence in placing a bid at auction. Should your bid be successful, we’ll then guide you through the application process for full approval.

    Please note that when buying at auction, generally, purchase conditions such as ‘subject to finance’ conditions are not allowed. As such, we advise you to be cautious in bidding a higher price than market value for the property as this may affect whether you receive final approval on a home loan.

    Should I always get pre-approval when applying for a home loan?

    Home loan pre-approval is not required for property purchases. However, there are many advantages to obtaining a home loan pre-approval. Pre-approvals are helpful in providing you with a better chance of securing a property as you will gain an understanding of your budget. This will give you a clearer direction when searching for your new property, taking the stress out of your home buying journey. Being pre-approved may also speed up your final approval application.

    Does pre-approval mean I will definitely get a home loan?

    Pre-approval provides only a rough estimate of the home loan amount that you are able to borrow from a lender. However, it is not a guarantee of a formal or unconditional home loan approval.

    In the unlikely case that your home loan application is declined after pre-approval, this may be due to:

    • A significant change in your financial circumstances
    • A change in your employment
    • A reduction to the score on your credit report
    • The property not being the type accepted by the lender e.g. properties that are difficult to resell
    • A change in interest rates

    What happens after I am granted pre-approval?

    After you are granted approval, you’ve found a home you like and the seller has accepted your offer, the following will be checked and/or implemented before you proceed to final approval:

    • Contract of sale/offer and acceptance
    • Confirmation of your financial situation
    • Property inspection and valuation
    • Property insurance

    Explore our library of articles related to your property and investment journey

    1 Rates shown apply to new eligible owner occupieda or investment home loansb only, loan limits may apply depending on your product (refer to the product page) and at least one applicant is on PAYG employment. For fixed rate loans, after the fixed rate term, a variable rate will apply. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to internet banking or by contacting customer service. Terms, conditions, and eligibility criteria apply.

    2 Comparison rates are based on a basic Homestar loan, on a $150,000 loan amount over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

    DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 15th November 2023 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.

    Registered to BPAY Pty Ltd ABN 69 079 137 518