Nervous about loan assessment time

Hi all just want to ask if CBA takes a very long time to assess loan application?

Contract Date: 11/11/20
14 finance days
80% LVR
No LMI
Has obtained pre-approval
Occupation: Medical professionals

Would we likely need to ask for finance extension?...

We checked the CBA website, the 4-7 days it mentioned refers to business days. Though, we are quite curious,

does CBA loan processing department actually work on Saturday?

 

Definitely be ready to ask for an extension. I wouldn't stress too much - EVERYONE is asking for extension atm. But if you want it done fast, there are lenders who can turn it around super quick.

 

Is CBA one of them? Thanks for any thoughts

Also, when do you suggest the buyer to ask for extension? On the last day of 14 days finance period?

 

Could be wrong about this, some of the CBA bankers on here may be able to unpack; retail channel 14 days is ok, no issues. Broker channel, slower, extension likely.

Not all have different service levels between channels, but CBA appear to at the moment.

 

Retail channel = apply directly to CBA without brokers?

 

CBA are at 8 business days to process an application.
Worst case scenario - you may need to ask for an extension to the finance clause but it's certainly not going to stop you from buying the property. Extension can be asked on the final day of finance clause or a day prior, your solicitor should be able to advise.
Try not to worry so much, trust in your broker.

 

Generally, vendors sign the contract because they want to sell on those terms. Sounds obvious, but it means that if you ask for a finance extension for a legit reason (lenders are slow) then vendors are likely to accept.

 

And the RE agent will be telling them that extensions are very normal right now - because they are.

 

We had to go back three times for extensions. Our original finance clause was 21 days but ended up being 49.

It was embarrassing for us but the vendors were ok with it. They wanted the sale as much as we did.

 

Often times it's much quicker for the seller to accept extensions with an existing buyer than put the property back on the market, depending on the amount of interest in the property.