Hi, My wife and I are in the process of buying a new PPR by leveraging the equity of our existing PPR (which will then be converted into an IP). We will also be putting additional savings towards the 20% deposit of the new house. We are using a mortgage broker (not a bank employee, an independent broker) and CBA for the two loans (refinance is an investor loan, and the new property is an owner occupier loan). We got two approval letters from the bank, and according to the broker everything looks good and assures there is nothing to worry. However, I have my concerns because they don’t seem to be unconditional offers. The finance approval deadline for the new property is next week, and both of us are feeling very nervous putting down a significant deposit. Hoping someone here would be able to provide some insight. Apologies for the long post, here are the details of each offer letter: The email title for the refinance offer reads “Pre Offer Letter - xxxxxx” the message body reads Please find attached the Pre Offer Letter for the above home loan application. Please do not reply to this email. For all enquires please contact your Broker directly, or call our home loan specialists. Commonwealth Bank Mortgage Services However the attached loan offer pdf doesn’t include the word “pre” anywhere. So I am little confused whether it’s a pre-approval or a standard loan approval. Was the email title a mistake ? Contents of the pdf are as follows: After the CBA letterhead, address info and date it reads: Application Number XXXXXX Dear our names We have approved your loan application. After some details there is a “What next?” section which reads We will finalise your loan application as soon as all of the following conditions have been met or checks have been completed: Statement verification of debts You will shortly be receiving some important documents. Simply complete and sign and return them to accept our offer. Then the particulars of the loan such as the amount, interest rate , term etc.. are given in a table. At the very end of the document it reads We may need to review your loan approval: if any of the financial information you give us changes or the interest rate shown above increases; or if the actual purchase price of the property or building costs on the property is different from the estimated purchase price or building costs you gave us. We have provided 100% accurate details, and haven't hidden any debts, so we are not concerned about the "Statement verification of debts" which I believe is bank verifying our existing debts such as the existing mortgage , credit cards etc.. ? The main concern I have is with the refinance amount. The application was submitted with a desktop valuation ordered from CBA which came back higher than what I believe is the current market value. IMO the desktop value reflects prices from early last year, but I’m pretty sure if we are to sell now, we won't get that for sure. The broker advises that since we are not accessing over 80% of the equity the bank don’t mandate a full valuation, and if they were to request one they should have done that by before issuing an offer letter. However, I am a little worried due to word "pre" in the email heading and the second bullet point listed above which reads: “if the actual purchase price of the property or building costs on the property is different from the estimated purchase price or building costs you gave us.” Although, because we are refinancing, not entirely sure if that clause even applies. What do you think? I’m afraid of the bank ordering a full valuation and that coming in a lot lower. Has any one had experiences with a refinance where a bank ordered a full valuation after a loan was approved (or in this case pre approved??) ? The email title of the second offer reads “Offer Letter – xxxxxx” it doesn’t have the word “pre” anywhere in the email or the attached offer pdf. The pdf attachment is identical to the first one except it doesn’t have anything in the “What next?” conditions part (where the previous one had: Statement verification of debts). Also, a full valuation was ordered for the new property and it came back at purchase price. So what do you guys think ? Am I over-reacting ? If the refinance doesn’t come through, or comes back with a significant shortfall then we are unable to proceed and risk losing the deposit. Should we push for an unconditional letter? If the bank is not willing to provide one before the finance deadline then should we ask for a letter indicating that our finance application has failed instead and get out of the contact?