Join Australia's most dynamic and respected property investment community

Mortgage Broker Question

Discussion in 'Property Finance' started by Timwest, 7th Apr, 2016.

  1. Timwest

    Timwest Well-Known Member

    Joined:
    11th Feb, 2016
    Posts:
    108
    Location:
    Sydney/Wollongong
    Hi,

    I have 14 days to get my Finance in order and have now been told this by my broker and I just want to check that it makes sense.

    Originally he wanted to go with Commonwealth Bank because they do not need a valuation for an interstate purchase and can get by with the contract of sale. He now said that Com Bank will not even look at the loan for 6 days due to the demand that they are under so could be to risky to get it done in time.

    He has suggested that I use "Vow Homeloans" who are funded by NAB and that we might be able to get away with a desktop valuation with them.

    Does this check out?
    Are "Vow Homeloans" credible?

    Appreciate any comments.
     
  2. Kinnon Bell

    Kinnon Bell Finance Broker

    Joined:
    14th Jun, 2015
    Posts:
    477
    Location:
    Cairns
    Pretty sure Macquarie is behind Vow. A lot of broker aggregators (think the middlemen) have their own white label products. PLAN, Fast and Choice aggregators are backed by nab. Sometimes the product offerings can be decent but the policies very closely align with the bank that backs them.

    Yes, CBA are very slow at the moment.
     
    Timwest likes this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,147
    Location:
    Canberra and Sydney
    That's not too bad! Diamond brokers have been told 8 days so your broker is getting good turnarounds!
     
    Timwest likes this.
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,103
    Location:
    Melbourne, Nationwide
    @Jamie Moore that's kind of what I thought. We're seeing 8 business days (and there's a day 0 in there) from CBA if we harrass them a little.

    There's still quite a few lenders getting loans approved in less than 2 weeks, but if you're after one of the best deals available you need to be prepared to wait.
     
    Timwest likes this.
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    What your broker says checks out.

    As of today, CBA are working to 8 business days and I've had a few deals slip to 9 before they were actually looked at.

    They're getting nearly double the applications than they're staffed to handle.

    Vow aren't on my panel so can't comment on that.
     
    Timwest likes this.
  6. Redwood

    Redwood Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    342
    Location:
    Melbourne
    Vow home loans is Macquarie not NAB.

    CBA is damn slow just had a $2m deal submitted 22 March and just reviewed today.... no chance that will meet your turnaround.

    Cheers Ivan
     
    Timwest likes this.
  7. Timwest

    Timwest Well-Known Member

    Joined:
    11th Feb, 2016
    Posts:
    108
    Location:
    Sydney/Wollongong
    wow, great response! Glad that this checks out. Ill do some more research on Vow home loans first but looks like I might have to go with them.

    Does anyone know what the turn around times would be for Vow roughly?
     
  8. Watson1

    Watson1 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    111
    Location:
    Melbourne
    My CBA relationship manager popped in to my office last week. Had a chat with him for ~45 minutes and I kid you not, his phone rang at least 10 times. Just thinking about the number of calls and emails, I felt so bad for him.

    Strangely enough, I submitted a deal this Monday and it was assessed by Wednesday, however, submitted a deal on the 29th and was just approved today.

    Looking at a deal I submitted today at 3.18pm and a deal I submitted yesterday at 3.22pm, there were 530 applications submitted within a 24 hour period.

    They are working over the weekend too, so a 8 day turnaround maybe only relates to 6 days.

    Doc prep are slow too.
     
  9. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Was your quick turnaround deal for an existing customer? I've lodged a few same day and had a differences or 3-5 days to assessment. In every day, it's been existing customers who are looked at first.
     
  10. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    I'm a Vow broker - you can get 1/2 day approvals atm so that's good. The Vow white label product has pro's and cons - biggest con is that to renew IO is a new application. Pro is offset with no annual fee, reasonable rate - broker should apply to get further discount, make sure he/she is doing that for you.
     
  11. Timwest

    Timwest Well-Known Member

    Joined:
    11th Feb, 2016
    Posts:
    108
    Location:
    Sydney/Wollongong
    Brilliant thank you so much! Seems fairly reasonable to me. How much would the normal and discounted rate be? 250k loan, IO, not fixed.
     
  12. Timwest

    Timwest Well-Known Member

    Joined:
    11th Feb, 2016
    Posts:
    108
    Location:
    Sydney/Wollongong
    I was told 4.98% is this good?
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    NO!!
    That's really bad. 4.83% is their carded rate for sub 90%, and you should get a discount of that. If it's sub 80% it would be 4.68%
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,989
    Location:
    Sydney
    Is it possible for the broker to load the rate to get more trail?
     
    Timwest likes this.
  15. Timwest

    Timwest Well-Known Member

    Joined:
    11th Feb, 2016
    Posts:
    108
    Location:
    Sydney/Wollongong
    Jess Peletier likes this.
  16. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    Don't think so. Turns out the loan was backed by a different lender - there's a few white label Vow products now but I assumed it was Macq.