Homeside said NO

Discussion in 'Property Finance' started by maadha, 23rd Dec, 2010.

  1. maadha

    maadha On the ladder... Finally.

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    Advice needed please...

    Applied through a broker for a Homeside mortgage but just got knocked back.

    Property Value = $540k
    Deposit = 55k + 7k FHOG.

    Broker said they knocked it back due to a paid default on my credit file of $360 back in 2005 and will now only do it if I go to LVR of 80%. (not going to happen)

    Apparently CBA and St.George are probably the best options to try next but just wondering if I should risk further credit checks or wait until March 2011 to reapply for a loan as the default will be wiped of my credit file then.

    Cheers
     
  2. Spectre

    Spectre Member

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    CBA or adelaide Bank as they'll tolerate defaults up to 1000 from memory.
    We dont put any defaults with Homeside & LMI.

    Depends on what the default is for though...

    Probably a few more but just off the top of my head
     
    Last edited: 23rd Dec, 2010
  3. MC1

    MC1 Member

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    Homeside are a pain at the best of times .... where any type of default is involved, paid or unpaid...... forget it
     
  4. Ausprop

    Ausprop Member

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    this is so dumb, as if a $360 paid default from 5 years is a huge red flag! banks are morons
     
  5. Qlds007

    Qlds007 Broker,full time investor

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    I agree cant believe your broker would put such a deal to Homeside assuming he was aware of the default.

    Like dressing up in a big red suit and going bull hunting.
     
  6. jonmardell

    jonmardell Mortgage Broker

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    i agree, homeside is not the best place for this deal as they have been positioning themselves over the last few years to reduce risk. CBA and a number of other banks would look at this. Best to be upfront in the new application and declare the default with an explanation.
     
  7. maadha

    maadha On the ladder... Finally.

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    Will the fact the Homeside did a credit check and rejected the loan impact the decision of say CBA if I was to apply with them?

    I agree about being upfront and did let the broker know about the default and even gave them a copy of the credit report and an explination.

    He was very suprised to be knocked back and mentioned that he let them know his feelings about this especially given the fact that he had sent them in excess of 10 mil worth of loans this past year.

    Thanks
     
  8. Spectre

    Spectre Member

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    It could have been your overall credit score also failed due to other reasons. Enough info isnt to hand to say.

    And also it may not have been the bank, but the insurer.

    Which may mean you need a lender who isnt Gemico or who has in house lmi approval under delegation from the insurer.
     
  9. Rolf Latham

    Rolf Latham Member

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    Hi

    While I agree, the risk managers tell me that the black box technology is much better at picking good credit than we humans are.

    I must defer to that logic, and the reason is this.

    My personal interaction with a client when assessing their suitability is at an entirely different level. I have much more info, time and emotionaly ased intuition to hand to have a look at what a potential client may or may not do.

    A human credit assessor hasnt got that.........the most reliable thing to them for the future is history..........

    In an environment where you have $ 100 to lend, and there is $ 200 worth of business you will secure this as much as poss unless u are getting some rate for risk.

    ta
    rolf
     
  10. Bradsdad

    Bradsdad Mortgage Broker

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    Depending on what the default was for ANZ can be thrown in the mix also.