financing troubles

trying to get a gauge of the availability of credit anyone having problems or are people finding it easy ? a brief outline of your situation would be handy too

cheers
 
Some lenders are making it harder, some are making it easier.

The CBA and Westpac have lowered their maximum LVRs for certain cases, whilst the ANZ has increased theres for some people.

NAB has recently reduced the requirements for documentation, but low doc loans are getting more difficult all the time.

Interest rates are also reflecting various lenders appetites to lend money.

In many ways the lending markets are quite fractured in terms of what they will and won't do. Some lenders have over extended themselves in the last few years, whilst other lenders are trying to be more generous to regain market share.

Despite this, in the last month, I've written at least one loan for every major bank in the marketplace. The best lender still comes down to the borrowers circumstances and needs.
 
There seems to be a major lack of lodoc 60% *construction* loans out there, although the broker we went through last time seems to think it'll be trivial to get one with CBA.

Hoping my old house actually sells between now and when they start the house so at least I've got a solid $110k downpayment for a $160k build that'll be valued at over $250k. Right now we're very borderline.
 
I've been selling off some property recently and must say that I was amazed at the number of sales I had fall through due to finance. Certainly helped to reinforce some of my reasons for selling.


RC
 
Talked to a REA south of the river Brisbane recently and she said that a property they sold had five offers on it - every single one fell over. They then relisted and got 3 more offers. Only one offer made it to settlement.

Boy, bet there was champagne that day.
 
I've been selling off some property recently and must say that I was amazed at the number of sales I had fall through due to finance. Certainly helped to reinforce some of my reasons for selling.

RC - Is it just because the valuations are coming below the selling price?
 
thanks for the replies folks . trying to get a feel for all aspects of the market .
reasons for refusal would also be appreciated if people care to share

cheers
 
Talked to a REA south of the river Brisbane recently and she said that a property they sold had five offers on it - every single one fell over. They then relisted and got 3 more offers. Only one offer made it to settlement.

Don't most people get pre-approval or at least some idea of their lending capacity before making offers?

Perhaps due to the competition in the market or the desire to own something just outside their price range they offer more than the pre-approval hoping that they can squeeze the extra out of the lender.

I'd hate to be a REA if 7 out of 8 bonafide offers can't get a loan.

Either people are deluding themselves into thinking their bank will give them the money, the lending criteria are too restrictive and people who can afford a loan are missing out, or people simply change their minds and give the old "can't get finance" excuse.

Regards

Andrew
 
I'd hate to be a REA if 7 out of 8 bonafide offers can't get a loan.

Either people are deluding themselves into thinking their bank will give them the money, the lending criteria are too restrictive and people who can afford a loan are missing out, or people simply change their minds and give the old "can't get finance" excuse.
I suspect that people don't realise how much credit has tightened, and whereas they would comfortably have qualified 3 years ago, today they don't.
 
Don't most people get pre-approval or at least some idea of their lending capacity before making offers?

Not that many get a full pre-approval. In my experience, most people don't really need a pre-approval, but they do need to understand how much they can borrow and the parameters around that.

It's very rare that finance fails on a purchase due to the valuation. It's usually something quirky about their income. If finance failed repeatedly on a particular property, I'd say it's likely to be the type of property lenders don't want to fund.
 
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