Finance declined

Hi all,

Have been declined lo doc loan with commonwealth due to recent refinance with wpac. broker has said servicability was not a problem but insurers didnt like the idea of recent refinance. he said if i was to now apply with another lender it will show up and they might not like the fact i have been declined.

I remember seeing another thread on a similar problem recently but couldnt find it. if someone could direct me to it or offer some advice on how to proceed i would be most grateful.

cheers.
 
Hello Harry

Doesn't sound quite right to me

If this is a low doc with mortgage insurance then you must be looking for 80%LVR. For CBA, this requires 12 months Business Bank Account trading history and 12 months BAS receipts

A recent refinance with one of the Big Four should make no difference whatsoever

Are you buying? As you have the financial documents, there are plenty of other lenders which will do low doc purchases to 80%LVR

If you have no Bank statements or BAS receipts you can still do quite well to 80%LVR with low doc provided that you have the ABN and GST registrations as per each lender's requirements

Anyway, being declined does not appear on your Veda or Dunn & Bradstreet, just that there was an enquiry by CBA for a mortgage loan of $X.

Provided you declare that you have recently refinanced with Westpac and did not proceed with your application to CBA you shouldn't have any problems (except with this strange person at CBA!)

Cheers
Kristine
 
Provided you declare that you have recently refinanced with Westpac and did not proceed with your application to CBA you shouldn't have any problems (except with this strange person at CBA!)

....and I'd be changing broker too. Any broker that accepts this kind of drivel from a lender is not pro-active enough in my opinion - you need a go-getter.
 
If this is a low doc with mortgage insurance then you must be looking for 80%LVR. For CBA, this requires 12 months Business Bank Account trading history and 12 months BAS receipts


Hi Kristine,
yes this is as you have stated


Are you buying? As you have the financial documents, there are plenty of other lenders which will do low doc purchases to 80%LVR


this was a pre aproval, i have just started to look for ip2.

i have recently refinanced from anz to wpac. i am aware of other lenders who will do low doc was just concerned about another nock back resulting in another enquiry on my history thus making other lenders weary.



Provided you declare that you have recently refinanced with Westpac and did not proceed with your application to CBA you shouldn't have any problems (except with this strange person at CBA!)


broker did go back and declare refi but made no difference. just want to know if trying to soon with another lender will be rais any more issues.
 
IMO CBA is probably the last place you'd go to for a low doc. Actually they've said this in public broker sessions not to send them low docs.

If it has
Interest Only
Low Doc
Investment property
Max LVR
Any default issues/judgement issues on your CRA
Any late payments - even by a day or so

It wont squeak through.
 
Some inexperienced brokers put the wrong deal to the wrong lender. You need a broker who understands what a particular lender will allow and what they tend to avoid.

This be a good point .

Again this week we have to clean up a train wreck caused by a " drive through" franchise broker ................

the issue that I see middle term is that the poor advice out there will not be fixed by the new NCCP rules.

The best 'modelled" thing I could describe for you prop, is imagine if a client retained you to find them a "high yield rtn property" .........and you think, great, the Woy Woy van park has plenty of cabins that have a high rental rtn..........

Imagine a BA that puts that fwd to a client !

Yet this perspective is common place in my industry :(

ta
rolf
 
Totally agree with Rolf.

Picked up a deal Friday before last which had been with another Broker for 3 weeks.

Broker was trying to push a 90% lvr through ING where we were very dependant on the new rent from both the property plus granny flat. If they accepted both income sources it was debatable whether they would have ever have done the deal in a month of sundays.

We took the basic information put the deal together over the weekend presented it Monday morning and called in a favour. Interstate valuation was done on Tuesday and on the client had unconditional approval by 5pm on the Wednesday.

Original Settlement date can still stand so 16 days start to finish.

It can be done but sometimes after 3 weeks of trying to get a square peg in the round hole you would have thought the original Broker would have scratched his head and thought "Maybe these were never meant to fit".
 
Hi Harry

I'm sorry to hear about your finance falling through.

Different banks have different methods of calculating how much they'll lend you. I recall once, I was already with one bank and they told me they would lend me another $250k. I went to a different bank and they told me they would lend me $430k. I couldn't figure out why such a big difference!!!

Which city do you live in?

I'm from Sydney and I can recommend someone (mortgage lender) for you to see from St George Bank. He's very experienced and if he tells you they will approve the loan and for how much, then that's exactly what you will get! You get peace of mind with him.

Not sure if there's any 'privacy' (?) issues about just posting his names and contact numbers on the forum ... but I can PM you the details if you are in Sydney.

Regardless, good luck with everything!
 
Hi Jigglypuff,

thanks for the offer but i'm not in sydney, a few hours up the road in newcastle.

not letting it nock me down will keep trying other brokers/lenders and also have a backup strategy in place for the project, just gotta keep moving forward.

cheers.
 
Hi Harry,

Our latest property purchase did not get knocked back however the lender would not lend 90% because they determined we are too rent dependent. Given that we have a reasonable portfolio the risk from multiple rental defaults is low compared to the possiblity of me becoming unemployed or injured so you would think having a rental return in excess of loan payments would be good thing.

We had similar experiences when we had our own business. Our employees could get loans but we couldn't. The bank said we were a risk because our business might go south but if this was the case we would lay off personnel before we closed the doors.

Considering our record of good financial stewardship you would think lenders would climb over themselves to lend us money and make them more profit. Sometimes they just don't understand business, investing and risk.

Good luck with your search for finance.

Regards

Andrew
 
Hi Jigglypuff,

thanks for the offer but i'm not in sydney, a few hours up the road in newcastle.

not letting it nock me down will keep trying other brokers/lenders and also have a backup strategy in place for the project, just gotta keep moving forward.

cheers.

You don't have to be in Sydney Harry75, ..... We live on the far south coast of NSW, but use brokers in Sydney and Queensland. Everything is done via phone, email and fax.

My brother is in Perth and uses a broker in Sydney ... never met him and doesn't need to.

Maybe take up Jigglypuff's offer or speak to one of the MB's that have contributed to this thread.

Good luck

Mystery
 
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