pre approval amount

Discussion in 'Loans & Mortgage Brokers' started by kr11, 7th Jul, 2015.

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  1. kr11

    kr11 Well-Known Member

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    hi guys.
    just wondering are you able to get a pre-approval amount from a bank of say 800k
    and then can you apply to settle 2 properties simultaneously with the bank if they were 400k each, provided u have funds for deposit, stamp duty and legals

    thanks
     
    kr11, 7th Jul, 2015
    #1
  2. tobe

    tobe Well-Known Member

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    Or you could get two pre approvals for $400 each.....
     
    tobe, 7th Jul, 2015
    #2
  3. kr11

    kr11 Well-Known Member

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    thanks tobe
    so it is possible to get a master-limit credit approval for the maximum amount the bank will lend and then get ip's accordingly to save time and no of credit hits?
    thanks
     
    kr11, 7th Jul, 2015
    #3
  4. tobe

    tobe Well-Known Member

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    Sure. Go for the max based on your income and deposit.

    It doesn't save much time though, and credit hits aren't a huge consideration in this example, as long as the number of credit hits correlates to the number of investment properties owned it's fine.
     
    Last edited: 7th Jul, 2015
    tobe, 7th Jul, 2015
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    One of my clients just did this. One big pre-approval and then she bought 2 smaller properties with loans almost totalling the pre-approved amount.
     
    Terry_w, 7th Jul, 2015
    #5
  6. kr11

    kr11 Well-Known Member

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    thanks terry
    was the process quicker on the individual property loan apps as a result.
    thanks
     
    kr11, 7th Jul, 2015
    #6
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No difference really. The second application was not pre-approved but as the policies had no changed we were confident that the serviceability was ok. You have to watch out for the recent changes in this area. 2 halves don't necessarily = a whole.
     
    Terry_w, 7th Jul, 2015
    #7
  8. Watson1

    Watson1 Well-Known Member

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    As far as I am aware ANZ are the only ones that can do this.

    I have submitted refinance/ equity release plus pre-approval in the same application and instructed the assessor to split them according to what I want ie. one application, 1 credit hit etc but two application reference numbers.

    So say I lodge an application for 1 mill, I cover it in the notes and say it involves a refinance of an OFI with a balance of $400,000 top up of $100,000 and seek a pre-approval for $600,000 investment purchase where funds to complete from the new purchase will be from $100,000 cash out.

    Saves me some work too.

    I would presume that ANZ could do it for two purchases too.
     
    Watson1, 7th Jul, 2015
    #8
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    It's not the norm.

    If you genuinely want to purchase two properties at the same time - and feel the need for a preapproval is important than grab two of them.

    Cheers

    Jamie
     
    Jamie Moore, 8th Jul, 2015
    #9
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