Hi All,
I am currently looking to refinance but having trouble. I would like to refinance a IP from Allstate homeloans as they're rates are astronomically high and during the high intrest rate period was paying 10.1%!! I have just recently past the date for a break fee and was looking at CBA. I bank with them as well as having another IP that is Cashflow+ under the wealth package. However they rejected me due to a $230 default from 2005, of which i provided a explaination in writing.
Question is, once one lender rejects finance, how do the other lenders react to this. I have heard there are only 2 insurance companies that provide LMI (as i was applying for 90%) is this true? and if so, if one lender rejects me will the others be certain to follow?.
I have a broker, for the first time, and she has advised that if they say no to 80% go to St G. I have read in previos posts that St G is not the easiest to deal with, as well as rates being higher and wonder if this is a good idea.
The amount of time waitng for feedback from the broker seems lenghtly as well as i applied for all of this on the 21 Jan. However, only found out yesterday 17 Mar, that i was declined, of which I contacted the bank myself as i was tired of waiting. It was much quicker when applying myself and i got the money!
I have no other debts other than the IP's.
Thanks
DavidIs this a full doc or low doc loan?
Lenders are getting tougher now especially on refinancing.. from memory ING recently downgrade it to 85%LVR on all refinance.
I think over the next 1-2 years… it will be difficult to refinance if you have >90% LVR into big banksHi David,
Not sure why CBA and the likes are knocking you back for a $230 default – that is within their unwriting authority with the mortgage insurer.
Is the default listed as paid?
Are you self employed or PAYG?There must be some other reason as.
Regards,
AndrewI provided Full Docs. I can quite easily, (well i thought, may be a different story now however) get 80%. The IP im refinancing has a 300k loan and val at aprox 400k, however was banking on 380k. The bank wouldnt tell me what the val came in as because they said they paid for it. However knowing what it was would definately help further decision making. I believe the broker is trying to find out for me today what it was, though dont know how she will go.
I dont have a property in mind to buy as yet but would like the money ready to go if i find one as I am on look out but feel restricted by funds even though the sums add up.
Where to go from here? and will other lenders turn me down because of this. Can i appeal the decision? or is this a silly question. I dont want to touch the cash flow+ property for exactly that reason… its CF+
Cheers
DavidHi Andrew
PAYG 75k and amount owing was paid in 2005. I too am confused!?have you ever missed repayments (at least in the last 6 months) for any credit facility with the bank?
Not in the last 6mths I was guarantor for my mothers property which she defaulted on but made arrangements with the bank to hold payments until property sold, which it did and she payed out the loan in full. The cba could see i contributed a 5k payment to her loan and brought it back no default. Even though this was a huge drama i was told this was not the reason and that is was was beacuse of the default
Thanks Andrew for your view on this situation
if the property sold and your credit is clear (other than the $230 default) then i don't see why they don't do it. I recommend getting a credit check done http://www.mycreditfile.com.au.
if it is what you think it is, perhaps try another lender, maybe RAMS etcRun away on any broker who suggest non-bank lender….
Too scaryRAMS fully owned by Westpac – Westpac funds are used – Even the Mortgage Docs Stipulate Westpac banking Corporation.
Yeh I to was with RAMS until they rammed me to RHG – Now only 6 months before i refinance away from these creatures!
I would not go to RAMS only to the big 4 alot more stable.
I would agree as i got bitten with Allstate and dont want to now stay with the bigger banks unless numbers really are fantastic.
However will they now all decline me because CBA has? how does it work with LMI? or even the asking for 80%, im concerned i may not even get this now.
CBA have tightened up there lending policy considerably so not suprisingly they declined the deal.
Would need specific information to advise you whether the deal could be done or not.
Richard Taylor | Australia's leading private lender
CBA have tightened up there lending policy considerably so not suprisingly they declined the deal.
Would need specific information to advise you whether the deal could be done or not.
Richard Taylor | Australia's leading private lender
Andrew is right, paid defaults under $500 should be allowed under CBA policy.
We obtain a credit report for free within 24 hours for our clients. It might be that there is another default that you are unaware of. Saves you 30 bucks or 10 days, however you want to look at it. They have the ability to approve this deal in house, rather than send it to their mortgage insurer.
Also, your current broker should not take 2 months to give you a response! Given the large volumes banks are getting again due to the increased grant, turnaround times are no doubt increasing, however two months is a joke.
The valuation should automatically come up on her system as soon as it is returned to the bank! Don’t be convinced by the line that Cba paid for it – it IS after all, YOUR property Lightyrs! Consider a case where you thought it was 400k but it only comes back at 360k. They HAVE to tell you how much because it impacts how much they will let you borrow.
Finally, in answer to your question, whilst it’s not good that you have a enquiry that has declined, it doesn’t strictly mean you can’t get finance from another lender at all. That’s why you’ve still got all these brokers in here asking you for more details!
Thanks for all the comments guys!
I rang the broker today and was told that she didnt get the val as her mobile lender had told her that the val hadnt come in. She has told this bloke to ring me directly to explain whats happening.Didnt receive the call today. However i am now even more confused because when i rang the bank directly they told me i was rejected…….how can they reject a application without even getting a val first????? is this possible????
Things are just not adding up and unless someone knows something i dont, it seems i will be looking for a new broker and new lender i will however reaply for my credit file to ensure nothing is there im not aware if, though strongly doubt it.
Cheers for all your help
DavidPosEnterprises wrote:Yeh I to was with RAMS until they rammed me to RHG – Now only 6 months before i refinance away from these creatures!I would not go to RAMS only to the big 4 alot more stable.
As stated above:
RAMS fully owned by Westpac – Westpac funds are used – Even the Mortgage Docs Stipulate Westpac banking Corporation. How is RAMS not stable being owned by Westpac? lol….again, RAMS is not the old Rams or RHG…move on…
David,
The process is as follows – the bank will determine whether or not to give you the loan based on 2 criteria:
a. Capacity – this includes things such as whether you can afford the loan on your 75k
b. Character – this includes your willingness to repay the debt ie your credit history
c. Collateral – the valuation of your property1. The bank will first give you a decision based on it's credit policy (ie serviceability calculations, number of defaults you have etc). This is called a conditional approval subject to a valuation.
2. The bank will then conduct a valuation and lend you a certain amount based on it being a percentage of the valuation.It is possible to get a decline before a valuation – this means you have been declined on policy rather than on the valuation.
If the valuation comes short, it is always easy to amend the loan amount to become 80% of this.
Hey Raymon I am moving on soon… though the name RAMS does still scare me
Now RHG are just as bad….Yes there is still bad stigma attached to the name and many people still associate it to the old Rams or RHG which is fair enough…pitty though as Westpac RAMS is completely different
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