Short answer: most home loan pre-approvals in Australia last somewhere between three and six months, and around 90 days is the most common. The exact period is set by each lender and is printed on your pre-approval letter, usually as a date rather than a number of days.
That date is only part of the story, though. We regularly see buyers with a pre-approval that is technically still current but wouldn't survive the formal application, because something in their finances moved in the meantime. So it's worth understanding what the date means and what it doesn't.
Why pre-approvals expire at all
A pre-approval is a lender's view of your application at a point in time. They have looked at your payslips, your bank statements, your debts and your credit file, and said they would probably lend you a certain amount. Every one of those things can change. Your income can go up or down, you might take on a car loan, and the lender itself can change its rules or the rate it uses to test your repayments.
The expiry date is the lender's way of saying the information is too old to rely on after that point. It protects them, but it protects you too. Nobody wants to sign a contract based on a borrowing figure that no longer holds.
What can cancel a pre-approval before the date
This is where people get caught out. A pre-approval is conditional, and these are the changes most likely to sink one early:
- A new job, or a change in how you're paid. Moving from permanent to contract, starting a probation period or dropping hours can all matter, even if the salary looks similar.
- New debt. A car loan, a personal loan or a higher credit card limit reduces what you can borrow, sometimes by more than you'd expect.
- Buy now, pay later accounts and missed bill payments that end up on your credit file.
- Spending your deposit or moving it in a way that makes your savings history hard to follow.
- The property itself. A pre-approval assumes a standard property. A small apartment, a unit in a large investor-heavy block, acreage or a home on a bushfire or flood-mapped block may not fit the same lender's rules.
- Lender changes. Policy and servicing rules move. If the lender tightens the way it assesses repayments, your borrowing figure can shrink without you doing anything at all.
If any of these happen while you're looking, tell your broker before you bid. It's a five-minute conversation that can save a lost deposit.
Not all pre-approvals are the same
Some pre-approvals are close to automatic. You fill in an online form, a system runs some numbers and you get a letter. Others are fully assessed, meaning a credit assessor has actually read your documents and checked your credit file. The second kind takes longer to get, but it is far more reliable when you come to buy. A quick online one can be useful for a rough budget, but it isn't something we'd want a client relying on at an auction.
We go into the difference in more detail in our guide to what pre-approval really means.
What happens when it runs out
Nothing dramatic. The pre-approval simply lapses and you can't rely on it any more. If you're still looking, you'll need it renewed. With most lenders that means providing fresh payslips and bank statements so they can reassess you on current figures. It is usually quicker than the first time, but it isn't automatic, so don't leave it until the week of an auction.
Some lenders run a new credit check when they renew. One or two enquiries for the same purchase won't usually cause trouble, but lots of applications with different lenders in a short window can look worse on your file than it really is. Renewing with the same lender, rather than applying somewhere new each time, tends to avoid that.
How to time it
If you're only starting to look, and haven't seen anything you'd buy yet, a fully assessed pre-approval three months out may lapse before you need it. A better approach for a lot of buyers is to have a broker run your numbers early so you know your range, then lodge the formal pre-approval once you're inspecting seriously.
For buyers on the North Shore and Northern Beaches, where a lot of homes go to auction, we'd suggest checking the expiry date on your letter every time you register to bid. If it's within a couple of weeks, get the renewal started. Auctions are unconditional, so there's no cooling off and no finance clause to fall back on. Our post on buying at auction covers what else to have lined up.
Pre-approval isn't the same as approval
Even a current, fully assessed pre-approval isn't a promise to lend. Once you've found a property, the lender still needs to value it and issue formal (unconditional) approval. That step usually takes a few days to a couple of weeks, depending on the lender and how quickly the valuation comes back. Our guide on how long home loan approval takes walks through each stage.
If you'd like a pre-approval that will stand up when it counts, our pre-approvals service explains how we do it. You can also get in touch or call 1300 001 755. We're based in Forestville and help buyers right across Sydney's north, from Chatswood to Manly.
Frequently asked questions
How long does home loan pre-approval last in Australia?
Usually between three and six months, with around 90 days being the most common. The exact expiry is set by the lender and shown on your pre-approval letter.
Can I extend my pre-approval?
Usually, yes. Most lenders will renew a pre-approval if you give them updated payslips and bank statements so they can reassess your position. It isn't automatic, so start a couple of weeks before it expires.
Does renewing a pre-approval affect my credit score?
It can, if the lender runs a new credit check. Renewing with the same lender is usually better than applying with several new lenders, which adds more enquiries to your file.
Can a pre-approval be cancelled before it expires?
Yes. A change of job, new debts, missed payments or a property that doesn't meet the lender's rules can all mean the lender won't proceed, even if the pre-approval is still in date.
General information only. It does not take your objectives, financial situation or needs into account, and it is not credit or financial advice. Lender policy, rates and eligibility change regularly and vary between lenders — talk to us about your own circumstances before acting on anything here.