When it comes to real estate, the best outcomes rarely happen by chance. The buyers who succeed are usually the ones who prepare early, long before they walk into their first showing. Preparation starts with understanding what a lender is willing to offer, and that can take one of two paths: a simple pre-qualification or a more thorough pre-approval.

Pre-qualification vs. Pre-approval

Pre-qualification is quick and informal, relying on a buyer’s account of income, assets and debts. It offers a rough estimate of purchasing power without requiring documentation or a credit check. For buyers still exploring possibilities, it can be a useful first step. It answers the “what if” questions that arise when moving is more of a curiosity than a commitment.

When the decision to buy is certain, pre-approval moves the process into high gear. This step requires collecting pay stubs, tax returns, bank statements and identification, along with a credit pull, which is not only required but highly recommended. Reviewing your complete credit history and accounts allows us to calculate your true purchasing power with precision.  

My team and I invest several hours carefully analyzing credit reports, verifying all documents, structuring your file and having one of our underwriters review it in advance. We invest the extra time upfront so that when we issue a pre-approval letter, nearly all the process is already complete. The result is a smoother transaction, faster closing and a stronger offer that gives the sellers the confidence you are the one to go with.

Picture this: a couple finds their dream home on the very first weekend of looking. They make a full-price offer, confident they will be approved. But without pre-approval, their lender couldn’t move quickly enough. By the time the paperwork was in order, the house was gone and sold to another buyer whose financing was already locked in.

Why it matters

That couple’s story is common and it’s exactly why the distinction between pre-qualification and pre-approval matters. When details are confirmed up front, underwriting moves faster and the risk of a deal falling apart after an accepted offer drops dramatically. 

Without that clarity, surprises like an income source that doesn’t qualify, can stall or even sink the transaction. Lenders follow strict guidelines when calculating what you can borrow. Bonuses or overtime may not count unless they’re consistent over time. Debts are measured precisely, and every source of funds must be documented.

The agent’s role

An agent’s role is to guide buyers toward the right step at the right time. Pre-qualification can be enough for those still shaping their plans, but pre-approval offers clarity and prevents setbacks later. It also keeps the search focused on homes that truly fit the budget, avoiding wasted time and disappointment.

The seller’s advantage

For sellers, a buyer with pre-approval represents more than interest, it represents readiness. In competitive markets where multiple offers are common, that readiness can tip the scales. It signals that financing is in place, the buyer is serious and the transaction is less likely to be delayed or derailed.

There is another advantage: speed. With much of the financial vetting already done, underwriting often moves more quickly. That can make a difference when timelines are tight or when a seller favors a fast close.

Buying a home often blends emotions with practicality. The emotional side is what drives someone to imagine themselves in a new space. The practical side is what makes it possible to turn the key. Pre-approval aligns both, giving buyers the freedom to focus on finding the right home while knowing the financing will be there when it counts.

In real estate, readiness is often the quiet advantage. Those who secure it before they start looking are the ones most likely to finish with the keys in hand. 

Kat Alvarez is a senior mortgage banker at note. A Mortgage Agency.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: zeb@hwmedia.com.

News Corp CEO Robert Thomson said the partnership with the ChatGPT-maker is a vital growth lever for Realtor.com and its parent company, Move Inc., and will help create a one-of-a-kind home search experience.

Banks have generally been more open to lending since rates were cut but there are exceptions based on location and property type.

Aussie banks are quietly slamming the brakes on certain mortgages — and thousands of would-be buyers are being blindsided by hidden rules that could kill their property dreams.

Loan experts have revealed that lenders are getting pickier with where they put their money in some specific scenarios, despite interest rate cuts improving the average home buyers’ borrowing capacity.

Scrutiny on certain types of loans means lenders are rejecting applications based not only on income and credit history.

Factors banks are considering could be as diverse as the type of property, the industry a borrower works in, and even how many of their neighbours have already taken out loans in the same building.

High-rise apartments – many within Sydney’s inner suburbs and emerging precincts like Strathfield and Parramatta – are among the hardest hit, new data shows.

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Mortgage broker and Its Simple Finance founder Joseph Daoud said in some high-rise developments banks were capping the number of mortgages they will approve in a single building.

Even strong applicants are being knocked back if the lender decides it already has too much exposure in that block, Mr Daoud said.

“Banks will not usually publicly disclose this but some lenders will have a registry where you can check,” he said.

“This issue is only something to take in consideration for high rise buildings and apartments, where lenders will be exposed to more risk if they approve too many loans in the one building.”

Mortgage Choice broker James Algar said a silver lining for buyers was that some of the high-density locations where banks had been nervous over off the plan purchases a few years ago were now deemed safe.

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Apartment buyers within inner city areas are being required to have a minimum 80 per cent deposit.

“We saw during Covid that a huge number of banks wouldn’t lend on a lot of new builds in areas near Ryde and Macquarie Park or they would only lend up to 70 per cent,” Mr Algar said.

“A similar thing happened in Fortitude Valley in Brisbane. Thousands of units were all coming to completion at the same time and investors were fighting for tenants. It was a race to the bottom for rents.

“The irony is that values in those areas have grown substantially now and the banks will lend again.”

Those who work in unpredictable industries are also coming up against a wall with loan applications, Mr Daoud said.

“The banks would be cautious mainly of businesses in industries with high failure rates and high volatility. The main industry that comes to mind is hospitality due to high business failure rates and thin margins,” he said.

Bidders in some areas are having to find they need bigger deposits because of lending restrictions.

“These industries are seen as seasonal and vulnerable to economic downturns which makes banks more cautious. Your numbers may be great and banks will still loan you money but they are also aware of the potential for you not being able to service this loan if things go wrong.”

Mr Algar said the general mood among residential lenders was that they were “open for business” and willing to work with buyers to get deals over the line.

But he noted that there has been some pushback on mature age loans applicants – usually older couples seeking to refinance. “There’s concern about the exit strategy for these (applicants),” he said.

The properties themselves are also being judged more harshly. Banks are black-listing homes in some mining towns and single-industry regions, warning that if a downturn hits, values could collapse.

Properties in flood and bushfire-prone areas are also being flagged as risky while retirement villages and student housing is being scrutinised due to a smaller pool of future buyers and legal complexities.

No exact locations lists from banks have been made publicly available but an annual No Go Zones report released by investment advisory group Positive Property has consistently included some of the same areas.

Suburbs such as Port Hedland in WA, which services the iron rich Pilbara region, have consistently been among its list of risky buying locations.

Other suburbs that have been perennially on the No Go Zones list have included Queensland mining towns Dysart and Moranbah and WA towns Broome and Millars Well.

Sydney suburbs on the latest list of No Go Zones for property buyers seeking capital growth were units in the Parramatta CBD, Asquith, Zetland, Haymarket and Lidcombe.

Mr Daoud said the category of housing mattered in riskier markets.

“Banks will tend to use comparable properties in the area and if the trend shows a drop in price this may be a sign,” he said.

“Certain property types like small apartments, serviced apartments, luxury or unique homes trigger automatic caution to valuers and may be reason to deem the property as overvalued.

“Also many banks run property automated valuation models so anything outside particular parameters will typically be flagged.”

Some lenders have quietly black-listed certain builders and developers, particularly those with troubled track records or contracts, Mr Daoud added.

“Banks can potentially knock back loans due to builders. In this case usually the builder may be known to them or have controversy tied to their name. Potentially as well if banks get wind of non-standard contracts that could expose the borrower to more risk.”

The post Hidden bank rules blocking thousands of property buyers appeared first on realestate.com.au.

Buying a house in Adelaide with just $500,000 was common not so long ago – fast forward five years and it would be a real struggle to find one that cheap now.

The city’s median house price was $492,000 in the September 2020 quarter, according to Valuer-General figures.

That’s skyrocketed to $925,000, latest PropTrack data shows.

Househunters with a strict $500,000 budget today would be hard pressed to secure a house, with the PropTrack data revealing there are zero suburbs across the metropolitan area with a median price below half-a-million dollars.

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There are no suburbs across Adelaide that have a median house price below $500,000, latest PropTrack data shows. Picture: Knight Frank.

However, they might have more luck if they switched their search to units, with 23 suburbs that have a median price below the $500,000 threshold.

Hackham West had a median of $355,000, making it the most affordable suburb for units.

Enfield ($366,250), Kurralta Park ($381,500), Bedford Park ($434,750) and Salisbury ($440,000) rounded out the top five.

Meanwhile, Paralowie, Plympton and Richmond all had unit medians just under the $500,000 mark.

Real Estate Institute of South Australia chief executive Andrea Heading said more and more buyers were opting for a unit over a house because it was much more affordable.

“What we’re finding is that units are the entry level for home buyers,” she said.

“If you do your homework properly, there’s some good buying.”

Ms Heading said prices in the CBD were higher, especially in the luxury space, but there were more realistic options in other desirable locations, including some beachside suburbs.

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Real Estate Institute of South Australia chief executive Andrea Heading. Picture: supplied.

“The further out you go the less expensive it is,” she said.

While unit prices have surged over the past few years, Ms Heading said they weren’t likely to climb as high as house prices had.

“I think you will be hard-pressed to see units go up that much, that market demand wouldn’t be there,” she said.

In the past year alone, PropTrack data shows unit values climbed 9.87 per cent to a median of $642,000, while houses prices rose 8.79 per cent to $925,000.

Property experts said there were several reasons unit values were rising at a faster pace than those of houses, but demand for more affordable homes was one of the main drivers.

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Turner Real Estate chief executive Emma Slape. Picture: Brad Griffin.

Turner Real Estate chief executive Emma Slape said many first-home buyers and even small families were choosing to buy units over houses because they offered a more achievable entry point and the lifestyle they wanted.

“Years ago we wouldn’t have seen as many first-home buyers or even people having a life change,” she said.

“Now they want to be close to the city to access better schools and save on transport costs.”

Adelaide suburbs with unit values below $500k

(suburb, median unit price)

Hackham – $355,000

Enfield – $366,250

Kurralta Park – $381,500

Bedford Park – $434,750

Salisbury – $440,000

St Marys – $445,000

Windsor Gardens – $450,000

Elizabeth Downs – $451,000

Brooklyn Park – $453,000

Salisbury Downs – $457,500

Walkerville – $460,000

New Port – $463,000

Woodforde – $465,000

Everard Park – $465,500

Edwardstown – $473,500

Salisbury East – $475,000

Gawler South – $485,000

Kilburn – $489,750

Klemzig – $490,000

Mawson Lakes – $495,000

Richmond – $497,000

Plympton – $499,250

Paralowie – $499,500

Source: PropTrack

The post Adelaide suburbs with median unit prices below $500k revealed appeared first on realestate.com.au.

Block hosts Scott Cam and Shelley Craft pocket millions while contestants scrape by on $100 a day. Picture: Channel 9.

Millionaire Block stars are cashing six-and seven-figure cheques while the contestants who pour their sweat and tears survive on just $100 a day.

Host Scott Cam leads the pack on a staggering $2.4m a year — about $48,000 an episode — cementing his spot as one of Australia’s richest television presenters.

Co-host Shelley Craft is estimated to earn between $500,000 and $750,000 a season, while former foreman Keith Schleiger, who stepped back last year after 16 seasons, was believed to be on $250,000-$300,000.

His successor Dan Reilly, now the sole foreman, is tipped to pocket closer to $150,000-$200,000.

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By comparison, the judges are paid modestly, long-time panellists Shaynna Blaze and Darren Palmer are rumoured to earn $60,000-$100,000 a season, while newcomer Whitefox founder Marty Fox is reportedly on a $2000-$3000 per-episode deal.
But Mr Fox himself has claimed the role delivered his business “over $250,000 in free advertising,” with client leads tripling after his first season.

Former judge Neale Whitaker, who quit the show after 13 years, was also understood to be in the same $70,000-$100,000 bracket as his fellow panellists.

Industry insiders suggest his move to Seven’s My Reno Rules, which begins filming this month, came with a far more lucrative offer, believed to be around $150,000.

But while the stars enjoy steady pay, the contestants — known as Blockheads — are left at the bottom of the financial ladder.

The judging panel earn just a slice of the hosts’ fortune — but score priceless brand exposure. Picture: Channel 9

Neale Whitaker (far right) quit The Block for Seven’s My Reno Rules, and a much fatter pay cheque.

Each is paid just $100 a day, or about $16,800 per couple across the gruelling 12-week build.

Prominent Melbourne buyers advocate Cate Bakos said the stipend was “below minimum wage” once the hours were factored in.

“If that was the industry standard, it would be shocking,” Ms Bakos said.
“Contestants aren’t just chasing the money, they’re chasing the platform.
“For those who can leverage it into media or design careers, the exposure can be worth more than the daily pay.”

From contestant to foreman, Dan Reilly now runs the site for an estimated $150k-$200k a season. Picture: Channel 9

Melbourne buyers’ advocate Cate Bakos blasts the $100-a-day stipend as “below minimum wage.”

Ms Bakos said the unpredictable auction results were a TV bubble, not a reflection of Melbourne’s market.

“The way the bidding unfolds just doesn’t mirror the real world, she said.
“It’s produced for entertainment, not a snapshot of the auction scene.”

M R Advocacy director and mortgage broker Madeleine Roberts agreed the financial gamble was huge.

M R Advocacy director and co-founder of Scale Lending mortgage brokers Madeleine Roberts warns the show’s financial gamble can be “crippling” without savings.

“Mortgages, childcare, day-to-day bills don’t stop just because you’re on TV,” Ms Roberts said.
“Unless you’ve got savings behind you, the financial strain could be crippling.”

Ms Roberts said the salary gulf between Cam and Craft also raised eyebrows.

“Both Scott Cam and Shelley are the faces of the show. They’re equally visible, equally recognised, yet his salary is miles ahead. It definitely raises questions about pay equity in television,” she said.

Block 2025 duo Robbie and Mat slog it out for peanuts while building million-dollar homes. Picture: Channel 9

But she added the real pay-off for contestants was visibility.

“For many, The Block is less about a cheque at auction and more about launching a career,” she said.
“You might not win the auction, but you win credibility and future opportunities.”

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david.bonaddio@news.com.au

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