Finance Help - urgent

Discussion in 'Property Finance' started by Alex McDonald, 23rd Oct, 2018.

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  1. Alex McDonald

    Alex McDonald Active Member

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    I am posting because I am in a very bad situation.

    Basically we bought a house that was for OO and we had conditional approval. We went to auction and won. However when we went for unconditional they took away my wife’s income which seriously reduced our capacity to service the loan, because we are moving and she doesn’t have a transfer. I made this clear at the start of the loan process but somehow it was lost in translation.

    Therefore, I changed to become a rentvester and they recently denied because we changed the condition of the loan and they were concerned on the serviceability. So I am still trying to get the loan with fire selling all my other assets including cars, we will find out if this is suitable tomorrow. The loan was through a single bank.

    I am in desperate need to fund this property, otherwise I will lose our 10% deposit plus buyers agent fee.

    I was wondering if anyone is able to provide me with course of action or to recommend brokers. We are in dire need...
     
  2. Brady

    Brady Well-Known Member

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    What industry does your wife work in?

    When is settlement due?
     
  3. Alex McDonald

    Alex McDonald Active Member

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    Aged care. No transfer. Settlement 15 Nov.
     
  4. mikey7

    mikey7 Well-Known Member

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  5. Brady

    Brady Well-Known Member

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    As per this...

    would be surprised if you couldn't get the loan somewhere.

    Ideally if you're borrowing @ 80% and not paying LMI if you need to go somewhere now at least you can go elsewhere without repaying LMI when your wife starts working.

    Has she started apply for jobs at the new location?

    How far away is the new property in relation to her current employer?

    Could she continue to live where she works and stay with friends/family until a new job is found?
     
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  6. Lindsay_W

    Lindsay_W Well-Known Member

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    Ask the lender if you can do it as investment loan? Tell them you're no longer going to move into it, the rate will be slightly worse but you will at least be able to settle and then consider moving into it later on? (once your wife has found a job in the area)
     
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  7. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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    Has she resigned already?

    Can you stay where you are, and only move once she has a job? In the interim buy as an investment property.

    You can always change the loan to OO when she has a role and you have moved.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You still have time, but you'll want to get moving! :)

    I suggest getting in contact with a broker ASAP with all your details and they'll be able to get something sorted for you - some lenders have a 24 hour turn around at the moment.

    Do you have kids? If you do, get your wife to go to centerlink and get an updated FTB assessment done based on her not working - this will help if your borrowing capacity is an issue.
     
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  9. jazzsidana

    jazzsidana Mortgage Brokers - Investment Savvy Business Member

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    That hurts.. Speak to one of the broker please without wasting any time to see if they can get you lending from other banks.

    Still got time in hand.

    Cheers,

     
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  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I suspect the loan was framed badly in light of the bigger picture right from the beginning. If you're purchasing in a different location, best to do it as an investment right from the start unless you can verify that all the income required for servicing will be maintained at the new location. It might cost a bit extra in stamp duty, but the approval is more reliable.

    The problem is that whoever set up the pre-approval probably didn't really work through the scenarios and give it proper consideration. Combine that with the fact that many lenders only give pre-approvals a very cursory glance and you've got a real problem.

    Changing how the application is framed doesn't look great either. Lenders are extremely conservative at the moment and changing the story halfway through with a lender...

    The right advice has already been given. See a broker, today or tomorrow if possible. Expect that you'll have to start the process from scratch with a different lender.
     
  11. Alex McDonald

    Alex McDonald Active Member

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    Thanks everyone. I have contacted a broker.
     
  12. Mortgage Capital Australia

    Mortgage Capital Australia Mortgage Broker & Private Lender Business Member

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    What LVR?

    Always look at a Nodoc deal subject to lvr as a temporary solutions until you can get traditional finance.

    Cheers
     
  13. Stoffo

    Stoffo Well-Known Member

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    Aged care is one of the biggest area's of employment in Australia these days
    It is very much a growing area of employment, though not paying as much as it is worth (to the employee, am sure the chains make a motza)
    Hard to believe that the bank knocked back a loan on this basis, plenty of people have lost a job during a loan period, you just apply for the next job.
    Clearly the lender is being short sighted :oops:
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    nope, the lender is following the rules of the game......

    The rules are, if the loan goes bad, and if there is anything minor or major that should have could have or maybe could have been assumed or insinuated, the ambulance chasing lawyers and consumer advocacy groups will hang the bank broker lender out to dry.

    In the end, its all meant for better consumer outcomes.

    ta
    rolf
     
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  15. kaibo

    kaibo Well-Known Member

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    Not short sighted at all. Is the bank asking so much that the wife has a job to pay for the mortgage. Banks I have dealt with needed a month of payslips and 3 months bank statement showing money going in. Seems reasonable to me. Just because I am a doctor by profession doesn't entitle me to a loan
     
  16. Stoffo

    Stoffo Well-Known Member

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    And I could trip and bump my head and never wake up, whilst owing $1.5m !
    I have never been able to understand the black or white attitude of loans, most I've been thru have been tick a box !
    Though I did have one, where they wanted to throw it in the bin accusing me of making false statements on my livving costs, $400pa for electricity was fraudulant, until I sent them a Google earth screen shot of my roof, covered in solar panels !
    Back to ticking boxes and conforming to the majority I guess
     
  17. Stoffo

    Stoffo Well-Known Member

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    But she currently has a job in aged care.
    The bank are concerned that she can't live at the new address and travel to work.
    My point is that plenty of us have job's, or lives for that matter, and mostly things work out.
    How far does the bank go to limit your risk ?
    No holidays, no sport, don't drive or cross the road ?
    Maybe LMI for the life of the loan ?
    The risk of not being able to gain employment in aged care is quite low
     
  18. Brady

    Brady Well-Known Member

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    The bank has the right to ask questions, especially in this climate.

    Say they give you the loan, but she doesn't get employment, fall behind in loan repayments, how do you honestly think this will play out in court... the bank would lose as they didn't act responsibly.

    Give them a explanation
    - tell them you're going to travel (include that in living costs)
    - tell them you're going to live with friends/family (include the rent/board cost)
    - even better get a job before moving, completely removes the problem

    There are many solutions to this problem. Suggest who ever the OP is dealing with at the bank is pretty fresh and it's all fallen into the too hard basket.
     
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    well said, and

    id go further

    Its an obligation to reasonably protect some borrowers from themselves, and in doing so, causes collateral damage in a few ways.

    But its always been like that, the majority will need to be treated the same as the minority that causes the issue.

    It will never be me that runs into trouble we all say, however 85 % of us think we are better drivers than average too :)



    ta
    rolf
     
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  20. The Y-man

    The Y-man Moderator Staff Member

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    @Alex McDonald

    Can you negotiate an extension of settlement?
    How many days settlement did you originally sign for?

    The Y-man