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Prepare to bid at auction with a clear finance plan

Auction contracts are generally unconditional. Before bidding, it is important to understand your finance position, arrange the required property and contract checks and set a firm limit that includes the deposit and purchase costs.

  • Arrange home loan pre approval before auction day
  • Have the contract reviewed before bidding
  • Complete appropriate property inspections
  • Confirm your deposit and maximum bidding limit
  • Understand that final loan approval is still required
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Before Bidding at Auction

01

Read the contract

Ask a conveyancer or solicitor to review the contract, title and disclosures before auction day.

02

Check the property

Complete suitable building, pest, strata and other investigations because auction purchases are generally unconditional.

03

Confirm your bidding limit

Allow for the purchase price, deposit payable at auction, government charges, legal costs and a cash buffer.

04

Understand finance risk

Pre-approval can still be withdrawn or reduced. Ask your broker about any unresolved conditions before you bid.

Why arrange pre approval before an auction?

Pre approval can help establish a likely borrowing range and identify possible issues before auction day. It remains conditional, so the property and your circumstances must still satisfy the lender before final approval.

Home loan pre approval can help establish a likely borrowing range, but it does not remove the risks of an unconditional auction contract. Existing homeowners may also need next home buyer finance or bridging finance where the purchase depends on selling another property.

Buying property at auction FAQs

Yes, but pre-approval does not remove the risk of an unconditional auction contract. The property and your circumstances must still satisfy the lender for final approval.