Preapproval and corona lock down implications

Discussion in 'Loans & Mortgage Brokers' started by Ricki barkham, 4th Aug, 2020.

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  1. Ricki barkham

    Ricki barkham Well-Known Member

    Joined:
    16th Aug, 2018
    Posts:
    300
    Location:
    Pakenham
    We had pre approval last week and was approved for what we needed.

    now due lock down we going to loose 20 to 30 k in turn over in 6 weeks.

    will we loose the ability to borrow what we need now or will the back count it as a exemption and go off last years tax?

    Don’t when we sign the draw down loan paper work have to say our finance haven’t changed but due to lock down they will.
    How will banks look at this?
     
    Ricki barkham, 4th Aug, 2020
    #1
  2. Trainee

    Trainee Well-Known Member

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    24th May, 2017
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    Location:
    Australia
    This is an example of why a broker would be better than going direct to a lender.
     
    Trainee, 4th Aug, 2020
    #2
    Lindsay_W likes this.
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
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    10,692
    Location:
    Gold Coast (Australia Wide)
    When converting to formal approval most lenders will ask about the circumstances and most will ask for recent BAS or 90 days business statement to ensure responsible lending

    Depending on your business type, there may be mitigations even with lower turnover for a small period.

    ta
    rolf
     
    Rolf Latham, 4th Aug, 2020
    #3
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    1st Jul, 2015
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    QLD/Australia Wide
    Which Lender did you get the pre-approval with?
    What industry are you in?
     
    Lindsay_W, 4th Aug, 2020
    #4