Man Loses 67k Deposit due to Lending Changes

Interesting story. Noob question, but how would this affect our situation?

One Aus citizen, one UK citizen on temporary to perm partner visa (hopefully sorted in the next 12 months)? Both living and earning in Aus, not looking at OTP but established investment property. Do we need to be FIRB approved (or rejected)?

Thanks,
Dan

 

Finance wise no problem as 1 AUS citizen and spouse - not sure on FIRB

 

I feel sorry for him but still my view is always when buying and making an offer and deposit you need to prepare for worst case scenarios, and that includes having issues with finance.

I always have multiple sources lined up (also to help secure best rates) but make sure I can complete with cash if really needed.

 

Should I be worried? I have got a formal approval from CBA but waiting for another approval from NAB just in case. Waiting for the settlement in September. Should I try to get approvals from other banks too? Both of us are Aus citizens and working here.

 

@Mon what is it that you think you should be worried about?

When you say you have formal approval, have you signed loan documents with the bank?

 

Yup, I have signed the loan documents with CBA and sent it back to my mortgage broker. I am just afraid that the bank will pull out last minute. Tenex was saying that he had a case with the formal approval but not sure I understood it correctly.

 

You're fine.

 

It's the Constitution. It's Marbo. It's justice. It's the law.

 

Sensational !

 

How long ago did you send the documents back?

Have you received confirmation that the documents have been certified and ready for settlement?

When was the valuation completed?

 

Putting in multiple applications is actually going to hurt/reduce your chances of securing the loan, not increase it. If CBA has approved the loan and you've already signed the documents then why would you apply with NAB?

Whatever you do don't put in another application... with ANY other bank. If for whatever reason CBA pulls out then I suggest you get in touch with a good broker and let them handle it.

 

I have only sent it back yesterday. The valuation was completed in June and got the formal approval in June too but I changed my mind to include my husband in the title so only got the loan documents this week. So, I am waiting for the certification and ready for settlement email from the broker.

 

I applied it with NAB cos of the interest rate and to be on the safe side. Ok, won't put another application in. Thanks.

 

Fair enough but this is where a good broker would have come in handy. They have access to multiple lending institutions and would've found you a good rate without having to do multiple applications. Having a few of these applications on your credit file is a negative in the eyes of the banks.

All the best.

 

Formal approval and pre-approval are very different things. You've got the formal approval, signed the loan offer documents, so you're fine. Settlement in September isn't a problem or even a few months later (in most cases).

Don't bother with additional lenders simply for the sake of having a 'backup plan'. It's a waste of every bodies time.

 

I dont have any trouble believing that FOS would be useful if your claim was for a few hundred dollars, you had a good case and you accepted the outcome in a "good will" format. But I dont know if my claim was that simple.

My claim from a money point of view entailed several tens of thousands of dollars. Also if bank wrong-doing was found by FOS and it went on record, it would obviously cause a lot of trouble for the bank later on.

In my case FOS sat on it for about a year (back and forth of course) and in the end they gave an answer that everyone knew was inadequate. In fact at the time the way the bank themselves replied to my claim was more reasonable and you have to understand the bank effectively funds them.

To me they were a part of the paper-shuffle. The magistrates apparently would like to see if you tried resolving the matter before bringing it to them. Once I initiated the legal proceedings the Bank knew I mean business, made an offer and I decided to accept.