Hello could someone please tell me how long a loan takes on average to settle once application has been submitted. It is an 80% lend (no mortgage insurance) I understand there are a lot of variables that come into play. I am after a general idea Thankyou
Loan approval times
- Thread starter Indulgedbelle
- Start date
Depends on the lender, deal and property - whether they're under-staffed, if a valuation is required or the clients circumstances are outside of the norm.
The quality of the application also comes into play - if additional info is required, then it will take longer.
I have lenders that turn around 80% deals in a couple of days....other will take weeks.
Do you know which bank your planning on dealing with?
Cheers
Jamie
The quality of the application also comes into play - if additional info is required, then it will take longer.
I have lenders that turn around 80% deals in a couple of days....other will take weeks.
Do you know which bank your planning on dealing with?
Cheers
Jamie
Settle >
As in loan drawn down ?
7 days is our record.
3 weeks is the average "fast" time
ta
rolf
As in loan drawn down ?
7 days is our record.
3 weeks is the average "fast" time
ta
rolf
Loan approval in 1-2 weeks is typical at the moment. Occassionally 3 weeks (sometimes longer) for a tricky deal.
Can usually get the rest done in 2 weeks after approval.
Thus:
* No less than 4 weeks for a puchase.
* 6 weeks preferred for purchase.
* Count on 8 weeks or more for a refinance.
Can usually get the rest done in 2 weeks after approval.
Thus:
* No less than 4 weeks for a puchase.
* 6 weeks preferred for purchase.
* Count on 8 weeks or more for a refinance.
Who's the lender?
if it's with AMP or Bankwest - expect 4-5 working days if your lucky.
Chasing up AMP every day is not fun....sigh
Chasing up AMP every day is not fun....sigh
No need to call - I'll tell you what the response will be - "it's in cue to be looked at by credit."
Hopefully now that the fixed rate frenzy has finished, service times will revert back to normal.
Cheers
Jamie
Thank You to all those who replied!! I did omit to mention it is a refinance, however I get the picture. We are refinancing from a low doc to full unsure who with. I am just considering getting it into order ASAP We are going over seas. It is a high level lend property worth 2.2 mill. Jamie I am interested in your opinion concerning fixed rates. I am wanting to fix a large portion of this loan as it is a large amount. I understand they are sitting at 3yrs 5.99 hoping to see another 50 basis points come off. I understand this is optimistic and I do not claim for one minute to have an understanding how fixed rates are connected to our economy. Cheers Jane
Hi Jane
Fixed rates are quite low at present - some are lower than the 5.99% mentioned.
Having said that, I wouldn't fix a loan in an attempt to save money against future variable rates. I would do it if I required certainty in my monthly repayments - it can be good for budgeting. I'd also be hesitant to lock in the entire loan as fixed due to the inflexibility of fixed loans. If you keep a portion of it variable, you can still have an offset set-up against it, etc.
There's also high break costs associated with fixed loans - which is something to consider, particularly on a loan that size.
Cheers
Jamie
Fixed rates are quite low at present - some are lower than the 5.99% mentioned.
Having said that, I wouldn't fix a loan in an attempt to save money against future variable rates. I would do it if I required certainty in my monthly repayments - it can be good for budgeting. I'd also be hesitant to lock in the entire loan as fixed due to the inflexibility of fixed loans. If you keep a portion of it variable, you can still have an offset set-up against it, etc.
There's also high break costs associated with fixed loans - which is something to consider, particularly on a loan that size.
Cheers
Jamie
Variable rates do influence fixed rates, but the funds aren't from the same source, so even if the RBA drops 50 points, it doesn't mean the fixed will drop as well. Of course this also means that variable could stay the same and we'll see the fixed rates drop.
Currently fixed rates are below the long term variable rates (which tends to be around 7%) so fixing now could save money. On the other hand with the Euro in trouble, the long term rates could drop, which means that todays low rates night be tomorrows high rates.
Generally I'd say fixed rates are best considered so you know what your repayments will be for a period of time. They're best used as a risk management strategy. Fixing right now might save money, but there's no guarantee of this. If you do decide to fix and rated do drop further, look at it and consider that you might not be on the best rates, but at least you know what you're paying.
Currently fixed rates are below the long term variable rates (which tends to be around 7%) so fixing now could save money. On the other hand with the Euro in trouble, the long term rates could drop, which means that todays low rates night be tomorrows high rates.
Generally I'd say fixed rates are best considered so you know what your repayments will be for a period of time. They're best used as a risk management strategy. Fixing right now might save money, but there's no guarantee of this. If you do decide to fix and rated do drop further, look at it and consider that you might not be on the best rates, but at least you know what you're paying.
