Approval Turn Around Times


Today I experienced something remarkable.

Lodged an application at 3.30am and by 2.50pm had an Approval from the lender.

Would have had an Unconditional Approval if we had provided the signed & exchanged Contract of Sale (applicant hadn't received the vendor signed copy as yet).

What makes this remarkable?

The quality of the applicant, the application and the supporting documents.

So this is just to say:

When you are considering buying a property, and your broker gives you a list of supporting documents, do it.

Take the trouble to make sure that bank statements are real statements, not internet printouts

Take the trouble to provide your Letter of Employment

Take the trouble to make sure that all copies are clear and easy to read

Take the trouble to have some savings and a half-way decent track record.

Yes, not everybody can provide these things (witness four hours today on the phone trying to find a lender not currently insisting on GST registration for a low doc loan), but if you are in a PAYG job, it really helps your own cause if you can provide good quality, up to date information to your broker.

The Assessor actually rang me and asked 'if I minded' if they use this application (anonymously) for training purposes.

So to my well-prepared and well-organised customers: Thank you.

We can think that 'if only' something or another happened, that we would be successful.

But our success is in our own hands, whether that is the research we put into finding a property, the courage it takes to negotiate a deal, or our willingness to keep finding and emailing information to our broker while they pull the deal into shape.

Success is a team effort. If you don't currently have a filing system, get one. If you don't currently keep bank statements, start to do so. If you don't have current ID, or don't have an Accountant, or don't have a savings pattern, or don't keep this or that, and you want to buy a property or refinance a loan anytime within the next twelve months (any twelve months), then start getting organised.

The NCCP has caused many lenders to review their 'responsible lending' policies and practices. The emphasis will be increasingly on the 'quality' of the application. Whether we like it or not, the documentation and compliance requirements for any loan application are going to steadily increase.

Yes, folks, the times are a'changing, and for those of us who are into property investing, it will be change or go.

My application today was a full doc loan.

For self certified applications (low doc loans) lenders are now required to satisfy themselves regarding the capacity of the borrower to service and eventually, repay the loan.

As John Kinghorn said in his Chairman's Address at the 2010 RHG Annual General Meeting:

...'Ultimately common sense will prevail and the NCCP will be amended. But until then, home loans will be denied to the majority of these (self certified) borrowers'....

So on that note:

Exhilarating approval times such as those I experienced today, may, for many other borrowers, be but a dream.

Preparation will be the name of the game from here on and in the famous words attributed to Oliver Comwell 'Put your trust in God, my boys, but keep your powder dry!', I would urge you all to amble on down to Office Works and buy yourself an archive box.

If you are self employed, register an ABN, and while you are at it, GST. Even if you earn below the GST threshold, most lenders are now requiring 12 months GST registration, some are insisting on two years GST registration, even if they don't require to see the BAS receipts!

Same day approval?

Yes, for one deal a year.

Approval for one deal to take one year?

Unfortunately, a lot of borrowers will soon find themselves up against a twelve month lead time, so start your preparation now.

Not much point in finding the ideal investment opportunity if you can't get the finance.

Be there, or be square!

Same day approval?

Yes, for one deal a year.

Approval for one deal to take one year?


Good post........the number of times one has to convince a client that a document is needed is becoming less and less as you get more forceful and they realise its for our common good !

I have had both this year.

2 same day and many more next day approvals.

One the other hand .............we have had many 6 mths plus, and my current record from day of app to drawdown is 354 days !