What's the news?
- New CommBank data shows home loan conditional pre-approval applications jumped 12 per cent this year after the first two 0.25% per annum (p.a.) variable rate cuts, compared to the same period in 2024.1
- The average home loan conditional pre-approval application amount was also up 13 per cent.2
- The rise in conditional pre-approval activity shows Australians are getting prepared to purchase property - whether buying their first home, upgrading, or investing.
- With another 0.25% p.a. rate coming into effect for CommBank customers on Friday 22 August 2025, more Australians could take advantage of getting their conditional pre-approvals in place, with online applications taking around 10 minutes to complete.
Conditional pre-approval numbers rise
Conditional pre-approval from CommBank gives customers clarity on how much they can borrow before they start house hunting.
Following the second variable rate cut of the year in May, conditional pre-approval applications increased 12 per cent nationally compared to the same time in 20241, as buyers moved quickly to take advantage of lower interest rates.
Looking at the nation's largest real estate markets, New South Wales led the charge with a 25 per cent increase, followed by Queensland at 16 per cent, while Victoria held steady.1
"It's encouraging to see more people feeling confident about their home buying options. The Aussie dream has long been anchored in home ownership, and this rise in conditional pre-approval activity reflects a renewed sense of optimism as borrowers respond to lower interest rates and increased borrowing power," said Executive General Manager Home Buying, Marcos Meneguzzi.
"Conditional pre-approval is one of the very first steps when buying a home. Buyers get a sense of their budget and that helps them act quickly when the right property comes along."
Borrowing power on the rise
Following CBA's variable rate reduction in May, the average amount home seekers applied to borrow was just over $733,000, 13 per cent higher than the same time last year.2 Looking specifically at first home buyers, the average conditional pre-approval amount customers applied for was $546,000 - an 11 per cent increase, slightly lower than the overall growth rate.2
"With our latest variable rate reduction coming into effect from 22 August, this trend could continue as buyers look to leverage the current downward rate cycle," Marcos said.
The benefits of knowing your borrowing power upfront
Obtaining conditional pre-approval can give buyers a competitive edge in fast-moving property markets, allowing them to act quickly and confidently when they find the right home, knowing exactly what they can afford.
CommBank's conditional pre-approval process is designed to be quick and convenient:
- Apply online in around 10 minutes or make an appointment with a Home Lending Specialist.
- Track your application in real time.
- Conditional pre-approval is valid for 90 days, with easy renewal options.
"At CommBank, we can also provide suburb and property reports, plus upfront cost estimates like stamp duty and legal fees, to give buyers added clarity as they navigate the market," Marcos said.
Understanding borrowing power
Following 0.25% p.a. variable rate cuts announcement in February, May and now August, borrowing capacity has increased around 7 per cent.3
Combined annual income |
Following three rate cuts, you may be able to borrow up to4 |
$150,000 |
$642,900 |
$175,000 |
$825,600 |
$200,000 |
$1,008,300 |
$225,000 |
$1,191,100 |
