Current Finance Approval Times

[s_t]

What are finance approval times like at the moment? Talking a straight PPOR purchase, fairly simple finances, 80 or 85% LVR, and loan size not a stretch. Is 14 days sufficient, or should it be more? Settlement timeframe?

Yes, I have a broker, from this forum, and he should be able to answer this for me, but he's gone silent over the last few days and I'm submitting a offer today....

 

[Peter_Tersteeg]

14 days finance turnaround should be sufficient at the moment. Occassionally it needs extending by a few days, but if your deal is as straight forward as you suggest I wouldn't be concerned.

30 days settlement is acheiveable, but I prefer 45 or more. This gives you extra time, 'just in case'.

 

[Jamie M]

What are finance approval times like at the moment? Talking a straight PPOR purchase, fairly simple finances, 80 or 85% LVR, and loan size not a stretch. Is 14 days sufficient, or should it be more? Settlement timeframe?

Yes, I have a broker, from this forum, and he should be able to answer this for me, but he's gone silent over the last few days and I'm submitting a offer today....

On the surface it seems sufficient - but even in the current environment, some banks can be quite tardy in their processing.

Cheers

Jamie

 

[Mick C]

If it's 80% LVR- 5-9 days
85% - give it an extra 1-2 days

As long as you have no complication - ie ask for more payslips, more docs etc....it will be all sweet with 14 days.

Regarding settlement; you have to include mailing time, getting insurance docs + JP ( some times) -so i say no less then 21 days from final approval.

By the way why don't you give your broker a call?

Regards
Michael

 

[MangoMadness]

2 months ago I bought and the broker submitted the forms late Monday and then called me on Wednesday mid morning saying it was approved.

I was quite suprised at the speed that it was approved at 1 1/2 days. must have been a slow week at the bank

 

[Aaron_C]

Finance approval times vary according to when the muppets at Bank Sesame Street have had their cookies or not that day

 

[Mick C]

2 months ago I bought and the broker submitted the forms late Monday and then called me on Wednesday mid morning saying it was approved.

I was quite suprised at the speed that it was approved at 1 1/2 days. must have been a slow week at the bank

If it was a UNCONDITIONAL approval then ..Great results...can't get any quicker then that i would have to say

Im guessing you were an existing client of the bank and No valuation was done? ie LVR was under 75%?

Regards
Michael

 

[s_t]

Thanks all. Broker got back to me as well.

I gather a few days finance approval extension is normally granted, if things turn out too tight (but by no means guaranteed).

Tenants have to be given notice, so they want 30 days after finance anyway -> 45 settlement. On this topic, should vacant possession be specified in the contract, or does simply leaving the tenant section blank do this?

Took a friend who is a builder through it this arvo, and he's lowered my enthusiasm for the place somewhat....

 

[MangoMadness]

If it was a UNCONDITIONAL approval then ..Great results...can't get any quicker then that i would have to say

Im guessing you were an existing client of the bank and No valuation was done? ie LVR was under 75%?

Regards
Michael

Existing client, LVR for new loan was 80% (based on purchase price) but I think would have been under 75% of the actual valuation and i think i recall the REA mentioned the valuation was done on the tueday (could be rememering wrong though)

But very happy with the turn around time

 

[Mick C]

Thanks all. Broker got back to me as well.

I gather a few days finance approval extension is normally granted, if things turn out too tight (but by no means guaranteed).

Tenants have to be given notice, so they want 30 days after finance anyway -> 45 settlement. On this topic, should vacant possession be specified in the contract, or does simply leaving the tenant section blank do this?

Took a friend who is a builder through it this arvo, and he's lowered my enthusiasm for the place somewhat....

You have to be specific and specify it within the contract...the tenant will need to be given 30 days notice some state 60 days for vacant possession ....so check with your conveyancer the legal time frame has been given ( by the vendor) ....else at settlement your going to have a lot of trouble getting the tenants out!!

Regards
Michael