My son is in the process of buying his first house. He managed to negotiate the owner down to a great price. Before he signed a contract he talk to a local mortgage broker here in Gladstone one he had spoken to before looking for a house to know what price range he could purchase in. He asked the broker what terms he should put on the contact the broker adviced 21 day for finance and B&P and 21 for settlement which that's what my son did. They decided on a loan through suncorp at a 3.71 % interest rate. The finance didn't make the 21 days the broker said because of the good rate suncorp was snowed under the broker said if he went with another lender for a high rate it would of went through quicker. So my son got an 7 day extension now the extension runs out tomorrow the broker hasn't heard back from suncorp as yet and advised my son that the rate has gone up .3% to now over 4%. The young bloke had put off the b&p off as long as he could but was forced to do it today because everyone is going away over Christmas. I don't think the broker has called my son once in the whole process my son has had to chase him and a few times he hasnt bothered calling back. We don't want the deal to fall through any thoughts on our best option?
Suncorp did get snowed under and yes their rates did go up. I'm not sure when the application was lodged but 28 days for finance is ridiculous for a straight forward purchase. Suncorp service levels have only got up to 11 business days. I'm guessing their has been delays? I would be asking your broker to call Suncorp and ask when a decision can be expected but I would be preparing to ask for another extension. If you can't get answers from your broker/Suncorp, I would find another broker to lodge an application ASAP with a lender that has decent turn around times
Suncorp are taking ages to look at loans submitted. I think it was something like 19 day turn around time. When was it submitted? If you go to another lender now you will get another credit hit and it may still take a week or so.
11 business days is their SLA. My experience has been quicker than this. Although there will be another hit to the credit file with another lender, being a first home buyer (without knowing the full situation of course) this shouldn't cause to many issues provided it is mentioned in the notes to the new lender. I'm sure a broker in high segmentation with a lender could get a decision in 3-4 business days.
For purchase applications that involve a subject to finance clause you generally stay away from the likes of Suncorp, ING et al who have cheap rates but terrible turnaround times. To be fair - Suncorp will turnaround deals quicker for some brokers and can be fast at times. ING on the other hand are simply slow - good rates, reasonable product but soooooo slow.
Crazy stuff. As a banker in another organisation, just by reading this thread I put 1+1 together and I can see these inefficiencies are causing these lenders to lose market share! Fix the process and they'll get more business through the door at a better margin..... this is causing buyers, sellers, brokers, agents, solicitors a lot more unnecessary work, (and depending on the person, stress and heartache....) It's not feasible to settle properties too close to Christmas/New year too so keep that in mind. Delays...
Many moons ago I worked in BPR............. I have to guess from that experience that some lenders havent bothered, because they are too myopic. Marketing doesnt speak to production, credit doesnt care about either, and in the end you get silos of responseability that no one can penetrate, and the only way to change it is to close the doors for a while, bring the silos down, and rebuild with a business wise client centric team approach. Simple but hugely complex, and largeish investment and significant risk............... ta rolf
Many moons ago I worked in BPR............. I have to guess from that experience that some lenders havent bothered, because they are too myopic. Marketing doesnt speak to production, credit doesnt care about either, and in the end you get silos of responseability that no one can penetrate, and the only way to change it is to close the doors for a while, bring the silos down, and rebuild with a business wise client centric team approach. Simple but hugely complex, and largeish investment and significant risk............... ta rolf
It was submitted 28 days ago. We realised that around Christmas could or would take longer but this is boarding on ridiculous.
Sounds like their could have been some rework by your broker that caused delays. Suncorp are generally quite good at meeting their quoted turn around times which as mentioned only ever got to 11 business days. Congratulations on the approval though! Almost as bad as BOQ last year. From memory, I think purchases blew out to 30+ days and refinances 40+
Thanks guys. I did speak to another local broker this morning and plan b was to move with them if finance wasn't sorted today. Thanks again I appreciate all your input.
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