How long pepper takes now?

The sales people or call centers for all lenders are not those assessing loans

 

Very true

 

So are they hitting you for the broker fees paid by Pepper to your Broker?

 

It depends on the lenders turn around times at the time you apply. Can change from 1 day to 2 weeks fairly quickly. All lenders are the same in this regard so it may not be that your are awesome and your broker is hopeless.

Also if you have a complex lending scenario or personal situation you will 100% not be better off going it alone. If yours is a plain vanilla set up you'd still be better off not going direct IMO. I would say that though wouldn't I.

 

That would not be the case. They'd get them from the broker, not the client.

 

An update. Just got a call from my broker
1) Conditionally approved
2) Valuation is carried out by the company in the noon but not sent to the bank yet.

Hopefully I will get some positive answer by this week.

 

It might have been a fixed rate break fee. You exit a fixed rate contract with a lender and they charge you the 'economic cost'.

Alternatively the broker charged you a clawback fee - which you would have agreed to in writing when you engaged them. They would have hit you with this regardless of which lender you use.

The only fee Pepper usually charges when closing a loan is the $250 discharge fee. It's actually cheaper than most lenders.

 

It was not a vanilla deal, self employed etc, but definitely felt like we weren't on the top of the brokers to do list.

 

My valuation came 130K less than other banks.

Is this normal. What are my options now?

 

My broker got the other valuation from the earlier applications and trying to increase the valuation

 

It is a established property. around 630 SQM and with plenty of room for expansion(STCA)

Other two banks have valuation on the purchase price.

 

Unfortunately it really isn't normal but it doesn't leave you with many options either. Here are some of the options open to you:

* Have your broker appeal the valuation - in my experience this is unlikely to work.
* Find a way to come up with $150,000 - perhaps friends and family might be able to assist? Additional personal loans are likely to reduce your serviceability so that's really not a good option.
* Family guarantee if you have family that owns a property that has equity in it.
* Try another lender who will use a different valuer.

You mentioned previous applications with other lenders. Did any of them complete a valuation as part of their process?

Do you still have a finance clause or another condition you can use to get out of the contract?

 

Yes the other two banks did full valuation and my broker is using one of them to discuss with the valuation company.

Broker said, valuation company asks for a reference from other valuations before considering revision. And he gave them.

Now I am a bit worried about the outcome. If it comes with 10k less i can still manage with a bit difficulties. but anything more than that will be very tough if not cant handle.

 

Is your property in a growth zone such as RGZ1 or ACZ1?
How much more is your purchase price vs recent sales (3mth) of comparable props?

 

Do Pepper offer a fixed rate on any product ?

 

Are you sure it is the val ? I had a few where val was ok and lender just decided on a lower lvr than originally offered.

There should not be such a large difference in vals.....

 

Mine is in GRZ but comparable sales in september with 4 properties around 530k-570k

 

My broker shared the valuation. Even if you search hard you cant find that kind of properties for including in the valuation. Someone did a very conservative valuation. We have already mentioned 4+ properties sold & settled in September around 530-570.

And a valuation from commbank for 550k also attached in the email.

 

Not sure if you can ask for a re-val if its with the same lender.
Brokers on here should know more though.