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Do I need my whole deposit saved before I go for pre-approval?
Bayley Clarke · Mortgage broker on the road · Last checked 1 November 2026 · 3 min read
The short answer
Yeah. The bank is pre-approving you on the premise that you're ready to make an offer tomorrow. That's the whole point of pre-approval. If you don't have the cash to buy the home yet, it doesn't really make much sense, does it?
There are exceptions. If part of your deposit is a gift from family, some banks will accept a signed letter saying it's non-refundable and not repayable, and the money doesn't necessarily need to be in your account to get pre-approved and start making offers.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why pre-approval assumes the cash is there
Pre-approval is the bank saying: on what we've seen, we'd likely lend you this much. Part of what they've seen is your deposit and your costs, sitting in your account, ready to go. So when you walk into an auction or put an offer in, the agent and the vendor are trusting that you can actually follow through.
If the deposit isn't there yet, the pre-approval is built on something that might not happen. That's not a good spot to be bidding from. So in most cases, get the cash saved first, then go for pre-approval, then go shopping.
The family gift exception
The one common exception is a gift from family. Some banks will accept a signed gift letter stating the money is non-refundable and not repayable, and they'll pre-approve you before the funds land. Others want the money sitting in your account when the application goes in, and on the 5% scheme a few lenders want some of the deposit genuinely saved rather than gifted. So whether this works depends on which bank we use.
Even where the letter is enough for pre-approval, the money still has to turn up before settlement. The bank will check, and if it isn't there, the loan doesn't go ahead.
What happens if the money doesn't turn up
This is the bit that matters. Once you've gone unconditional on a property, you're committed. If the gift falls through after that point, there's not much anyone can do for you, me included, and you're in real trouble when it comes to getting your deposit back.
So if the plan relies on family money, get it into your account as early as you can. Ideally before you make offers, and certainly before you go unconditional. A promise isn't cash, even from people who love you.
The honest bit: pre-approval isn't the finish line
A pre-approval tells you what the bank would likely lend. It isn't a guarantee, and it still depends on the property, the valuation and your situation not changing before you buy.
If you're not ready, there's no shame in waiting a few months to get the cash together. Going early with a hole in the deposit just moves the risk onto you.
Not sure if you're ready for pre-approval?
A 30 minute call. We go through what you've saved, what's coming from family, and what needs to be in the bank before you start making offers.
No cost to you. The bank pays me when a loan settles. · How I get paid
Next question
Do I need pre-approval before I look? How long does it last?Not always. You need your numbers before you make offers, so you know where to aim and whether you'd be approved.
Related answers
The full guide: How to buy your first home My parents are gifting me the deposit. Does that count as genuine savings? Pre-approval or unconditional approval: which one actually lets me sign? Do I get my deposit back if finance falls through? How much cash do I actually need for my deposit to buy a $600,000 property?Not your question? Book a call and ask it, or call 0437 189 939.