Why Approvals Expire

Loan approvals are issued for limited periods to ensure lending decisions reflect current risk conditions.

Expiry is a structural control within credit policy.

Time-bound risk assessment

Approvals rely on:

• current financial position
• current employment
• current credit profile
• current property valuation

As time passes, these factors may no longer be accurate.

Policy and funding considerations

Lenders must ensure approvals align with:

• present lending policy
• funding costs
• regulatory expectations

Expiry allows reassessment where conditions change.

Consequences of expiry

When approval lapses:

• reassessment may be required
• updated documents may be needed
• borrowing capacity may differ

Outcome certainty is therefore time-limited.

This page explains structural expiry only and does not assess individual approvals.