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NAB Home Loan Process Q&A ?

Discussion in 'Property Finance' started by john towers, 12th Jul, 2016.

  1. john towers

    john towers New Member

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    Hi all - Can anyone tell me what the NAB Q&A process is following Verification being completed ? My banker says everything is in order and Q&A is simply a double check verification was completed ok.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    NAB red star seems to have a different approval process to other lenders - they seem to have a credit officer conditionally approve the deal and then send off the supporting documents to be double checked/verified after.

    Cheers

    Jamie
     
  3. john towers

    john towers New Member

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    So I applied on Friday and I had a Veda alert on Saturday that a credit check had been done. It moved to Verification and is in Q&A now. My banker has said there shouldn't be a problem and to expect a call about the offer but I was just anxious as we have been stressed over the whole process.
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Sounds like standard NAB process to me.

    Cheers

    Jamie
     
  5. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Here are the NAB broker rates, you can get them a bit lower by submitting a manual pricing request, just want to make sure you don't get ripped off for going straight to the bank :)

    From today Monday 11 July, we’re offering the following special rates for new variable rate NAB Homeplus applications with <=80% LVR and aggregated lending >=$250k:

    • 3.99% p.a. for Owner Occupied, Principal and Interest loans (comparison rate 4.17% p.a)
    • 4.09% p.a for Owner Occupied, Interest Only loans (comparison rate 4.54% p.a)
    • 4.14% p.a for Investment, Principal and Interest loans (comparison rate 4.31% p.a)
    • 4.24% p.a for Investment, Interest Only loans (comparison rate 4.68% p.a)
     
  6. S0805

    S0805 Well-Known Member

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    @Simon Moore, may i ask what your are getting with NAB Homeplus application with 90%LVR, lending 330K, IO for investment properties currently....also, in your exp have you seen their $10 month fee waived
     
  7. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The NAB's space for competitive rates is really at 80% and below. Their quoted rate for 90% lending is 4.77%, but they can be negotated down a little on that.

    They will negotiate on the $10/mth fee when you've already got several other loans with them. Keep in mind that $120/year in fees is cheaper than the annual package fee most lenders offer for up to 3 loans.

    Realistically the biggest advantage of the NAB is using them when servicing starts to get a bit tight. For certain investor profiles they'll lend significantly more than any other mainstream lender. At that point investors should probably already be restricting themselves to 80% lends anyway if possible.

    The NAB is a great lender in many respects, but if servicing isn't an issue and you're wanting to aggresively levergage over 80%, they wouldn't be my first choice.
     
    Fielding likes this.
  8. S0805

    S0805 Well-Known Member

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    I think that's true for most of the major lenders isn't it. They all seem willing to deal @ 80% lvr compare to higher lvr. I was curious to know as NAB has come out with some deals in fixed rates recently and CBA has been aggressive doing deals for new customers...

    I get that $120 year is not much compare to other bundled packages however its still the cost. i think its per loan account. So if you have two loans you paying twice. which of the major has limited 3 loan accounts...ANZ from memory has unlimited accounts in their package....
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @S0805 the CBA is certainly quite agressive at the moment. Their fixed rates are generally quite a bit higher than the NAB, but they are negotiating to make them comparible. LVR plays a significant role in rate negotiations, but if it's 90% negotiating can be trickier.

    The NAB has been known to negotiate on the fees when you've got 4 or more loans. If it's less than 4 loans, they're already cheaper than their primary competitors, so they've got no incentive to negotiate.
     
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  10. Simon Moore

    Simon Moore Mortgage Broker - Melbourne Business Member

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    Like @Peter_Tersteeg I don't know off the top of my head about NAB's rates on that sort of loan. I would probably begin looking at stuff maybe below 4.4%, but it's totally going to depend on that client's situation.
     
  11. Anonymous-

    Anonymous- New Member

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    Given NAB Broker products can only be obtained through the broker channel, does the end customer have a relationship with NAB Broker subsequent to loan approval with things like general enquiries, rate negotiation etc. or would these have to go through the Broker?

    What are the current approval (either pre-approval or unconditional) times for NAB Broker?
     
  12. Dean Collins

    Dean Collins Well-Known Member

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    But isn't servicing always going to be an issue eventually?
    eg as I'm finding out banks really don't care about LVR at all with current APRA rules.

    With our 3 Sydney properties our LVR is only 57% and we are looking to borrow an additional $700k which would take us back up to 68%

    We've been knocked back based on servicing issues even though currently only losing $2k pa in total and with the 4th property this will only go out to $10k......eg well within what I define to be our ability to service (eg we paid off principal over $80k last year).
     
  13. York

    York Finance Broker Business Member

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    Banks most certainly care about LVRs. But in your case it would seem your issue is with servicing. So regardless of LVR, if you can't service the lender will refuse further lending.
    Also what you define to be your ability to sercice and what the bank defines your ability to service are 2 very different things.
     
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  14. albanga

    albanga Well-Known Member

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    This is another mix up between equity and servicing. It's like saying why can't a retiree on the pension sitting on a 5mil property at 0% LVR borrow.
    Simple....How will they pay the bank back thier money each month?
     
  15. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Sooner or later servicing is going to be an issue for everyone, irrelevant of how low your LVR is. Above 80% however, some lenders increase the servicing criteria that need to be met. Almost all lenders 'credit score' more harshly so even if servicing stacks up, they might still decline the loan. Accessing equity up to 80% is fairly easy, above 80% it's extremely difficult.

    There is a relationship between serviceability and equity in some lenders policies, but it's a very small component. LVR is still incredibly important however. We've had a lot of deals fail at 90% but funded at 80% by the same lender.

    If you're living in New York (an expat) then banks care very much about LVR but it is independent of servicing. 70% seems to be a common max LVR for expats at the moment, but 80% is still possible. Above 80% is almost impossible. It doesn't matter how strong your serviceability is.
     
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  16. tobe

    tobe Well-Known Member

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    Not so much how are they going to repay the debt, more like how is the bank going to spin it when ACA comes knocking after turfing a pensioner for non payment.
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Brokers are paid to give ongoing service as you require it, so why wouldn't you talk to your broker? We're always doing a huge amount of rate negotiations with most lenders for existing customers, we even negotiate rates on loans we had nothing to do with (and don't get paid for).

    I think turn around times for NAB Broker are generally 6 days, but there's ways for the broker to cut this down a bit (if they know how). It's not great, but that could be said of most of the larger lenders for the last few months.
     
  18. S0805

    S0805 Well-Known Member

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    thanks @Simon Moore ....II think its time for me to submit the pricing request...will chase up with my broker...