Finance Help - urgent

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...

 

What industry does your wife work in?

When is settlement due?

 

Aged care. No transfer. Settlement 15 Nov.

 

Pretty much any broker on here is worth talking to..
Service Provider Directory

 

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?

 

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)

 

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.

 

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.

 

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,

 

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.

 

Thanks everyone. I have contacted a broker.

 

What LVR?

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

Cheers

 

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

 

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

 

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

 

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

 

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.