It’s no secret that getting finance at the moment can be a challenge. Particularly with the Royal Commission shining a spotlight on the Finance industry.
What does this mean for you? well it could mean you need to consider seeing a Mortgage Broker rather than your bank for any future lending.
Just this week I met Nathan, and here’s his story:
Nathan had moved from NSW to QLD. He had put his successful business on hold while he took a PAYG job in QLD to settle in, buy a house and hopefully grow his business in QLD in the future.
Nathan went to his bank and got a pre-approval to purchase a home within his price range so he went shopping and found the perfect home. This property was well within his price range, it needed some TLC which was exactly what Nathan was looking for (a project)
Nathan put an offer on the property and the vendor accepted. He took the contract to his bank and the loan was conditionally eligible subject to a few things that needed to be checked.
Unfortunately this was taking time and Nathan had to ask the Vendor for another extension on his finance. Luckily the Vendor agreed and Nathan had another week to get his formal approval.
It was at this point the Bank came back to Nathan to say the application was outside of their policy and they had to therefore decline the loan.
Nathan had used two finance extensions and still had no finance and no idea where to go from here.
I received a phone call on Monday form Nathan’s realestate agent, asking me if I could have a chat to Nathan and see if there was anything that could be done. I meet with Nathan and we decided while the interest rate was important, we really wanted a lender that would get us a formal approval as soon as possible so we could secure the property and get moving towards settlement before Christmas.
We submitted the application and within 24 hours we had a Formal Approval to Nathan with loan documents being express posted so we can sign them and get them back for settlement next week.
I’ve been asked by clients, family and friends if I’m worried about Banks and Lenders tightening up and if it means my business will slow down, but as you can see from Nathan’s experience, it will just mean I have more opportunity to help more people get into their homes.
Remember, your Bank may have a few different home loan products but they have one policy, and in the current climate, many of them are not willing to step outside of that policy. Speaking to a Mortgage Broker you are not just looking at over 30 interest rates but you’re looking at over 30 different policies.
If your Bank has said no, or you have an unusual circumstance, feel free to contact me to chat about how I can help.