Next Property Workshop on 6th July 2024

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‘Live Deal’ vs ‘Pre-Approval’


‘Live Deal’ vs ‘Pre-Approval’

Buying a home involves a whirlwind of paperwork, approvals, and deadlines. The first thing buyers want to know is ‘how much can I borrow’. You’ll likely encounter a couple of different terms, one is “live deal,” and the other “Pre-Approval”.  It’s important to understand the difference and how each can affect your ability to purchase a property.

What is Pre-Approval?

Pre-approval is a conditional assessment by a lender indicating their willingness to lend you up to a certain amount. It’s essentially a test drive of your borrowing potential. It doesn’t guarantee you of that amount, as pre-approvals always come with the condition of the bank’s willingness to accept the property as security for the loan.

What is a Live Deal?

A live deal signifies you have a specific property in mind and have taken concrete steps towards acquiring it. This could be:

  • An accepted offer on a property, subject to financing being secured.

  • Identified a property for auction, tender, or deadline sale and are actively preparing your bid.


Live Deal



Targets a specific property

General borrowing potential


Requires concrete action (offer/bid)

Conditional assessment

LVR benefits

May offer higher LVR options

Limited impact on LVR

Processing time

Can be faster due to specific property

General timeframe

Competitive edge

Demonstrates seriousness to seller

No impact on seller perspective


Why This Matters

Prior to entering the competitive housing market, securing pre-approval for a mortgage is typically seen as a crucial due diligence step. It provides a reliable estimate of your borrowing power, akin to assessing your car’s performance before a race. However, it’s not a guarantee of success, as not all banks offer pre-approvals (some only want ‘live deals’). 

Instead of going through the process of applying for a pre-approval and waiting for one, you may also get a good estimate of your borrowing ability through talking to a mortgage advisor. This can help you narrow your search to properties likely within your budget, then when you have a ‘live deal’ you can submit an application to give you a definitive answer to your borrowing ability on that property. So you can know with certainty, whether you can purchase the home you’re specifically looking at, at that time (either an accepted offer with a conditional Sale & Purchase Agreement, or before an auction).


 If you’re eager to unlock your own potential in Auckland’s property market, whether you’re a first-time buyer or a seasoned investor, Lucia Xiao is here to guide you. Join us for her upcoming workshop to gain insights and knowledge that can help shape your property investment journey. Don’t miss out – CLICK HERE to learn more and take your first steps towards property success!