ubank cancelled my homeloan 3 weeks before settlement

Discussion in 'The Buying/Selling Process' started by htopg, 7th Nov, 2013.

  1. htopg

    htopg Member

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    I exchanged contract for a house on October 21, 2013.
    The agreed settlement date is December 2, 2013.
    Since the property is sold by NSW Trustee and Guardian, there is no cooling off period and I put down 10% deposit (around $35,000).
    The dealing with ubank has been good at the beginning. :)
    I passed serviceability test, got all the documents required for their online "tracker" facility.
    After all the required documents have been received by ubank, they did a valuation on the property this Monday.
    The valuation came back good. It matches the purchase price.

    I have been busy finding potential tenant over past 2 weeks.
    I accepted one of the tenant's application and he gave me 1 week rent today as a security. :)

    I then logged into ubank's tracker facility to see the progress and found that the loan has "disappeared".
    I rang ubank up and I was told that the property has a granny flat which is against their lending policy. :eek:

    I argued that it is not a granny flat but a teenager retreat.
    They said it does not matter. As long as it is a detached house and it is tenant-able then they will not lend you the money.
    Even if it is just a game room, pool shed, workshop, rumpus room, bar room, etc.

    This is a lesson well learnt....
    level 1: look at just rate
    level 2: look beyond rate and look at features (redraw, offset, etc)
    level 3: look beyond rate/features and look at policies

    Now I need to come up with 300k to settle in 3 weeks time.
    I am not sure if any lender can settle a loan that quick.:(
     
  2. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Talk to a broker ASAP. Homeside could be a good option here - or CBA depending on servicing.

    Cheers

    Jamie
     
  3. htopg

    htopg Member

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    This is what worries me. Given that so many good investment properties on the market have some sort of sheds or garage with windows or teenage retreats at the backyard. uhomeloan is just not suitable for this kind of properties.
    I really wonder why they have such policy?
    Don't they realise that granny flat boosts serviceability to pay them interest?
     
  4. RetireRich101

    RetireRich101 Member

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    ubank should rename to rbank ( rubbish bank)..
     
  5. Rolf Latham

    Rolf Latham Member

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    3 weeks is adequate time to find a lender that has common sense, especiailly if you select lender tommorow and broker orders val before submission

    Be aware that not only U bank is a bit funny at 80 % or higher with grannes

    ANZ and BWA arent much chop either, and suncorp can be dramatic as well

    ta
    rolf
     
  6. Rolf Latham

    Rolf Latham Member

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    pointless arguing and whoever took your application at U bank has wasted your and their time and ur CRAA file, that sort of thing isnt unique to u bank, or banks in general, but also afflicts many brokers.

    Ubank dont want anything but vanilla borrowers and properties, which is why they can cut fat out of the rate.

    Its like going to Aldi and whining they done have Kellogs cornflakes..........

    ta
    rolf
     
  7. Aaron_C

    Aaron_C Finance Broker

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    Talk to broker. Now!
     
  8. Terry_w

    Terry_w Member

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    Don't expect anything from the cheaper lenders other than very standard straight forward securities. Anything out of the ordinary and they cannot assist.
     
  9. Spades

    Spades Banned

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    Hi htogh,

    Get yourself a good broker asap ^.

    Also,have you asked your solicitor to convey to the vendors solicitor you will/may* need an extension for finance?

    If not,speak to a broker first and see what they think your chances for finance approval with 3 week time frame.

    If you have to extend say for 2 weeks for example,as above ask for an extension with a token payment as in good faith you intend to follow through with the deal.Token payment would be minus funds from settlement,pay now,refund later.

    If that fails paying penalty interest say again for example ie:2 weeks,it's peanuts in the scheme of things if you are getting a good deal.

    Good luck

    Cheers Spades.

    Ps.Don't stress,imo a good broker will pull this off within 3 weeks
     
    Last edited: 8th Nov, 2013
  10. jonmardell

    jonmardell Mortgage Broker

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    3 weeks is enough time, i had an application submitted and settled in the last 10 days with a major bank.
     
  11. Brady

    Brady Big 4 Banker

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    3 weeks is plenty of time for most banks.


    This week had customer come in and see me after broker didn't really do the right thing with them (paid LMI with CBA but suggested elsewhere, costing them $2k extra... other bank was purely for lower rate)

    Got the deal Tuesday, val back yesterday, loan doc'd last night. Will be settling Wednesday.


    Best of luck hopefully you get it sorted quickly.