Conditional vs unconditional approval

When you’re buying a home, getting loan approval is a key step - but not all approvals are created equal. Understanding the difference between conditional and unconditional approval helps you know where you stand and what’s still left to do.

Conditional approval means your lender has reviewed your application and is likely to approve your loan, but there are still a few things to tick off. These might include verifying your income, valuing the property, or finalising paperwork. It’s a strong sign, but not a guarantee.

Unconditional approval (also called formal approval) means your loan is fully approved. All conditions have been met, and you’re good to go. This is what you need to go unconditional on your contract and move toward settlement.

If your contract is subject to finance, you’ll usually have a set timeframe to move from conditional to unconditional approval. That’s why it’s smart to get your broker or lender moving early, and keep your Kindred agent in the loop.

Unconditional approval gives you confidence to move forward, knowing your finance is locked in and your purchase is secure.