One of my clients called last night to say he is having problems getting the finance for the house he wants to buy from me at work. Initially he had a pre-approval from ING and then thought he might shop around for a better deal and ended up getting a pre-approval from St George aswell. However when it came to the crunch both banks had a change of heart and decided they would go to a 95% lend instead of 97% leaving him short with his deposit. He then went to 2 mortgage brokers who also couldn't help him.
Some people might see this as a good thing and say he just needs to save more money or buy a cheaper house but the dumb thing is that both ING & St George pre-approved him to spend up to $850,000 based on the servicability of he and his wife but the house he is trying to buy only costs $457,950. Have to wonder whether the banks are cutting their own throats and how far reaching these new rules are going to be. Presumably there is no-one left that would do the 97% on decent rates?
Some people might see this as a good thing and say he just needs to save more money or buy a cheaper house but the dumb thing is that both ING & St George pre-approved him to spend up to $850,000 based on the servicability of he and his wife but the house he is trying to buy only costs $457,950. Have to wonder whether the banks are cutting their own throats and how far reaching these new rules are going to be. Presumably there is no-one left that would do the 97% on decent rates?
