Can a bank decline a loan after unconditional approval granted

Help Please, Advise Needed
Conditional Approval given on 18/01/2021 Unconditional Approval given on 16/02/2021 Contracts exchanged and deposit paid on 17/02/2021 Loan Docs issued 18/02/2021.
On 22/02/2021, banks requested my statement showing last 3 months of wage deposit and my 2021 ATO YTD income statement

On our conditional approval email dated 18/01/21 and it's says
'Note that this approval is only valid for 90 days from date of approval. Post that date, the following updated documents will be required:
1. The most recent income documents, if not already held. Example - up to date payslips
2. Confirmation of no changes to customer financial position (required after 30 days)
Formal approval given 16/02 So if I'm reading this right 90 days defiantly havent gone pass and formal approval given on 29th day So aren't the bank in breach of there own policy

My question here can the bank decline our loan with settlement due in 2 weeks? Will we be out of pocket of our deposit and in breach of contract

 

Yes it's possible

 

In theory they could. It isn't common for a bank to ask for this detail post unconditional approval but in some instances lenders may complete additional verification checks including employment checks or request for latest salary credit.

Which lender? Have your circumstances actually changed?

 

Nothing has changed in the last 2 weeks, NAB had our signed sale of contract and conditional approval was granted a day before our cooling off period, once formal approval was given we went ahead with the sale and exchanged contracts, loan Docs have been issued and then 2 days later, they wanted more information

 

That is unusual.

 

So let's say worse case scenario, do we have any legs to stand on?? We are a young family and it is a lot of money for us to lose

 

No legs

 

Thank you

 

If nothing has changed would be interesting to hear why NAB would knock back an unconditional approval merely days after approving it?
I would be seeking legal advice if this is the case especially if your going to lose your whole deposit?

 

Yes.

Have heard in the height of covid banks ringing to confirm employment is current day before settlement, have no personal experience with this though.

 

I think this is fair enough considering the Pandemic. Surely though if nothing has changed everything should be all ok?

 

Would assume so, seems they are just confirming no changes, see highlighted below.

Could be an oversight since they have given unconditional approval

 

Our lender always requested for recent 3 months' wage, deposit and ATO statement before they granted unconditional approval. Wasn't this your case ? Any reason why they are asking for these again?

 

Did your circumstances change? If so, maybe the bank got wind of it?
Otherwise, talk to your solicitor now and talk to the ombudsman, they might be able to give you the appropriate advice.

 

Had this happen with WBC after full approval.

Wanted updated payslips and statement, tax returns, superannuation statements etc.

It was hell

 

Was it difficult to get 3 new pay slips, a bank statement, current tax return, superannuation statement?
I could gather these in under 10mins, what am I missing?

 

I had one with WBC about 2 hours before settlement. They discovered an error they made in approving the loan and refused to settle.

 

Did buyer lose there deposit, very harsh if this is the case?

 

If "uncoditional" approval is conditional then would you be acting as a lawyer for your client?
Surely it's a simple case of misleading and deception to call conditional "unconditional"?

 

Have a read of the terms of any loan offer or unconditional.

I wasn't acting as their lawyer but broker, but wbc eventually settled after reassessing their loan and I think lending them less money. They had their own lawyer and pursued them for some costs.