What Does It Mean?
An In-Principle Approval (IPA), sometimes called Approval-in-Principle (AIP), is a non-binding indication from a bank of how much home loan you qualify for, based on your income, existing debts, and TDSR/MSR limits. It is valid for around 30 days and lets you shop and make an offer with confidence. An IPA is not a loan guarantee — final approval follows a full application and property valuation.
Why It Matters
An IPA tells you your real budget before you fall in love with a property. Making an offer without one risks committing to an option fee you cannot finance — if the bank later approves less than expected, you could forfeit your deposit. Always secure an IPA before issuing or exercising an OTP.
Where to Find This on ShiokNest
- Mortgage Calculator
- TDSR / MSR Affordability Calculator
Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.
Official Sources
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Frequently Asked Questions
How long is an IPA valid?
Is an IPA a guaranteed loan?
This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of July 2026. Check official sources for the latest.