Final Approval Past Cooling Off Period

Discussion in 'Loans & Mortgage Brokers' started by Samnewman, 25th Aug, 2020.

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  1. Samnewman

    Samnewman Member

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    Story short, I had conditional approval from the bank approx 3 month ago as self employed, I proceeded with a property transaction based on that, and due to the fact that the property is off the plan, I.e., not registered the bank couldn’t provide an unconditional approval.
    I paid the 10% deposit already, and now I’ve been told my application is high risk and loan could be declined as my income was impacted for one month which was caused by COVID. The last 2 month though were good in terms of income with no income gaps.

    Now if bank refused to approve my loan, what are my options so I don’t forfeit the deposit and to complete the purchase?
    I only have 7 days left before settlement date!
     
    Samnewman, 25th Aug, 2020
    #1
  2. Terry_w

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

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    Your only option might be to settle somehow. This might entail getting finance from elsewhere.

    Seek urgent legal advice as another option is to find a way out - the contract may be defective for example
     
    Terry_w, 25th Aug, 2020
    #2
  3. The Y-man

    The Y-man Moderator Staff Member

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    Part of the joys of off the plan purchases - even if you get a loan, valuations may come in lot lower than what you signed for.

    What LVR were you after?

    I say to people if you are buying OTP, have at least 30~40% cash ready in case of loan shortfalls.

    The Y-man
     
    The Y-man, 25th Aug, 2020
    #3
  4. Samnewman

    Samnewman Member

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    It’s 80% LVR
     
    Samnewman, 25th Aug, 2020
    #4
  5. sumterrence

    sumterrence Well-Known Member

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    Which suburb is the unit located?
     
    sumterrence, 25th Aug, 2020
    #5
  6. Trainee

    Trainee Well-Known Member

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    And how much cash do you have as a % of the purchase price?
     
    Trainee, 26th Aug, 2020
    #6
  7. Louise G

    Louise G New Member

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    Louise G, 26th Aug, 2020
    #7
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Based on buy Price or val ?

    And what lender pls

    ta
    rolf
     
    Rolf Latham, 26th Aug, 2020
    #8