Loan application 2016 or 2017 ?

Discussion in 'Loans & Mortgage Brokers' started by Stoffo, 15th Nov, 2016.

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  1. Stoffo

    Stoffo Well-Known Member

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    Hi all :)

    Have a property up for settlement in June/July 2017
    (Yes its OTP, but plz leave that aside :oops: )

    Is there a likely hood that there will be further tightening of the current lending criteria in 2017 :eek:

    Is it possible to apply now and obtain a loan in 2016, with the balance then drawn down at time of settlement?

    Thoughts:rolleyes:

    Thanks in advance :D
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Any loan set up now is likely to need to be reassessed after 3 months. Not much point in applying now.

    I've no doubt that there will be more changes in the meantime. I doubt there'll be anything as substantial as what we've seen over the past 18 months, but it seems to me that APRA doesn't want to stand still. Constantly meddling.
     
    Perthguy likes this.
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    Not much you can do now unfortunately.

    What changes are you worried about in particular - servicing, policy, deposit size?

    While brokers can't predict changes exactly, we can use some judgement about whats possible and likely to help risk manage.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I wouldn't apply for anything until at least three months prior to settlement.

    Better yet - try to avoid applying until you've had the valuation returned.

    I'm not liking OTP this week - low vals are causing my office headaches :-(

    Cheers

    Jamie
     
  5. Stoffo

    Stoffo Well-Known Member

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    Thanks Redom, servicing is one of my problems.

    Jamie, yes OTP is becoming a problem.

    Since yesterday, I've emailed my bank manager and organised a meeting anyway. Will find out in Dec if they are interested in financing me (and have time up my sleeve)

    Have a good chunk of equity in PPOR, an almost cash neutral CIP.
    Paid deposit for OTP south of Sydney, price $750k, can make 20% deposit to avoid LMI, but i think this is WAY over my previous servicability :oops:
    Am self employed, just started year 3, all business debts have been payed off now, but at the cost of very low income ($45-60k pa) having said that, this financial i should earn over $110k:cool:

    Thanks
     
  6. tobe

    tobe Well-Known Member

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    Being se gives you a few other plan b options. Although many low doc lenders don't like otp or high rise either.