CBA credit assessment team timeline?

Discussion in 'Loans & Mortgage Brokers' started by warek, 25th May, 2018.

Join Australia's most dynamic and respected property investment community
  1. warek

    warek Well-Known Member

    Joined:
    3rd Apr, 2016
    Posts:
    47
    Location:
    melbourne
    Request information from any brokers out there

    We have applied for loan pre approval with CBA, after several weeks we have just been told that we have passed the servicability test and that it has gone to the credit assessment team.

    The issue will be the retirement rule. I am retired and my wife is 58 but on a 5 year state government contract as a primary school principal. At the end of July 2020 if that contract is not renewed she is guaranteed ongoing employment as an assistant principal.

    We have combined super lump sum payout large enough to cover the mortgage owing.

    Being fairly rash, I made an unconditional offer on a house in Victoria, and it was verbally accepted. tTe contract is ready to be signed and if I sign the contract there is a 3 day cooling off period and we will loss 1880 if we exercise that option.

    I am prepared to take that risk assuming that we will get a final answer from CBA within 3 working days. What are our chances?

    Thanks for taking the time to respond on a weekend

    Cheers

    Kevin
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    CBA is a 2 day turnaround for us, or maybe 7 days at a worst case.

    At retail 2 to 3 days max is all it should take

    Calling Brady ?

    ta
    rolf
     
    Brady likes this.
  3. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,607
    Location:
    Sydney (Australia Wide)
    Retail channel is likely a 1-2 days once it goes to credit team. They don't seem to be too busy at the moment.
     
  4. warek

    warek Well-Known Member

    Joined:
    3rd Apr, 2016
    Posts:
    47
    Location:
    melbourne
    Thank you Rolf and Redom
    Ho Rolf

    Thanks for the reply, I am not sure how to contact Brady, I searched on some posts, found him, set up a private conversation , but did not find an email or phone number. Any suggestions?

    Cheers
    Kevin
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,673
    Location:
    Perth WA + Buderim Qld
    Personally I wouldn’t be betting $1800 on a service level when it took them several weeks just to assess your serviceability.

    I’d also expect delays if you haven’t already cleared your exit strategy with them.
     
    Terry_w likes this.
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,977
    Location:
    Canberra, Brisbane and Sunshine Coast
    Around two days for us at the moment.

    Several weeks sounds very strange. Sounds like someone has dropped the ball here - are you using a broker or banker?

    Cheers

    Jamie
     
  7. warek

    warek Well-Known Member

    Joined:
    3rd Apr, 2016
    Posts:
    47
    Location:
    melbourne
    Hi Jamie

    Using banker as our initial plan was to retire and pay off loans within 1-2 years from super. Our broker suggested would be a problem with his commission if we paid of loan too quickly and advised best to deal directly with the bank.
    Person we were dealing with went on leave, gave work to another person, who then gave it to a third person, original person now back from leave and back on the case. In actual fact it has been in the process for 4 weeks seeking pre approval

    Cheers

    Kevin
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,675
    Location:
    Australia wide
    It might be a good idea to not pay off home loans with super - have you sought advice on this?
     
  9. warek

    warek Well-Known Member

    Joined:
    3rd Apr, 2016
    Posts:
    47
    Location:
    melbourne
    Thanks for all replies. In this case we have arranged with our children to borrow any shortfall. Sort of the opposite of the bank of mum and dad.

    Cheers

    Kevin
     
    tobe and Terry_w like this.
  10. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,742
    Location:
    Sydney
    How about since you have not yet signed the contract, just make it subject to acceptable finance (and pest and building inspection?)

    I want you to have peace of mind.
     
  11. warek

    warek Well-Known Member

    Joined:
    3rd Apr, 2016
    Posts:
    47
    Location:
    melbourne
    Well the answer came through, CBA preapproval yes, passed the credit team.
    For those people interested CBA preapproved a loan of 750000, yet in my discussions with NAB the best they would offer was 450000.

    I like to make offers not subject to finance if I can as I think it makes your offer more attractive, but yes, it created some issues this time that I could have done without.

    Have a good day.

    Cheers
    Kevin
     
    Redom likes this.
  12. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,742
    Location:
    Sydney
    Phew!
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    I like that :)

    ta
    rolf
     
  14. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    why do not you sign the contract subjecting to finance approval?
     
    Terry_w likes this.
  15. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,675
    Location:
    Australia wide
    Good idea even with a pre-approval!
     
  16. Sheldrick

    Sheldrick Well-Known Member

    Joined:
    22nd Feb, 2017
    Posts:
    216
    Location:
    Queensland
    I recently had preapproval with one bank - Suncorp - but was denied. My application was well within my preapproval limit and was when my preapproval was still valid. Switched to another bank, no issues. :)
     
    Terry_w likes this.
  17. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    Not surprising

    Suncrap are marginal on other things ............so that doesnt surprise me at all.

    Advertise a cracker IO rate on PPOR loans, attract the business then 3rd party line style force Principal and Interest ..............

    Id be interested if anyone has had a PPOR IO loan approved with Sun in the last 6 mths .

    ta
    rolf
    ta
    rolf
     
  18. Sheldrick

    Sheldrick Well-Known Member

    Joined:
    22nd Feb, 2017
    Posts:
    216
    Location:
    Queensland
    I went through a broker too. Then decided go straight to the bank. Got a lower rate too and got it done in an hour :eek:
     
  19. Sheldrick

    Sheldrick Well-Known Member

    Joined:
    22nd Feb, 2017
    Posts:
    216
    Location:
    Queensland
    IE me going directly through a bank was quicker and much easier than going through the broker I had engaged...
     
    Brady likes this.
  20. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,561
    Location:
    Adelaide, SA
    Sorry Kevin, I was on holiday Gold Coast > Vegas > Cancun > Melbourne back home to Adelaide :)