refinance

Hi all


I am in the process of refinancing my PPOR Loan and I am up to the settlement stage finally. I realize these things take time but was wondering how my experience compares to other re finances. I used Empower Wealth for it and I am very happy with the outcome which was- and Aussie P/I Loan at 4.19 % no offset to an ING Loan I/O for 5 years with offset and also 4.19 % ironically and dropping to 3.99 % as of August. It suits our situation well. The initial consultation with Empower Wealth was April 9th and as I said still waiting for settlement to be booked but all approved. Is 3-4 months normal?

 

No. Not for a straight forward refi. That's quite long....BUT I don't know what was involved with your application. There's a gazzilon things that can slow it down.

Cheers

Jamie

 

Yeah mate, i have to agree. It can take ages to settle loans depending on personal situations. (anecdotally) i have a mate with one house (PPOR), he and his wife are on 150K plus incomes each, and i think from start to finish was 5 weeks (as there was a car lease they couldnt find docs for, and personal loan or something they needed to find docs for)

My personal most recent refinance took a similar time frame (to your personal experience) due to the properties I own, and changing jobs (within same industry) so its a case by case situation. I agree the time seems long, however, its a case by case situation.

 

I don't think I had anything fancy that caused problems but i'm not an expert so maybe. Happy with the outcome regardless, I may use a smaller company next time as they are popular

 

3-4 months for a REFI?? WTF

 

@Bean27 what's the hold up? Have you signed documents? Surely can't just be waiting for settlement booking.
Something has gone wrong for 3-4 months.

 

Documents were signed and posted nearly 2 weeks ago and everything is approved. Each step just seemed to take forever. More often then not I had the paperwork signed and returned the day after it was sent to me. They had to do a valuation but that was done in 3-4 days.

 

Yeah mate, i work as a valuer, and they are usually out within 3/4 hours, the hold up now is usually the bank and their credit department if the risk ratings are 4 or more on any issue outside recent market direction, or market volatility...

So not sure whats doing... Out of interest did you have a personal loan, large credit card limit or similar?

 

No the only debt we have is the home loan, we have a credit card limit of 9500, but always payed on time. I use it purely as a tool to earn points and keep money in the offset (once its actually set up)

 

the limit on the credit card may have caused an issue there mate, but not a 3/4 month delay i don't think. i'm at a loss as to why it took so long.

 

Is that something I should look at changing? They just assigned 9500 but I would only need 3500 maximum for one month

 

Still talking 3 months+ just to get to doc sign. That's a load of s###. Glad that you're still happy with the overall service.
Understand valuation can take few days, order, set date/time, inspection, valuer complete, returned to bank, vet....
But unless you're having something crazy shouldn't be more than 2 weeks ever max * before documents ready to sign.

 

4 months is too long, but there is probably a reason.

 

It took about 3 weeks just to get some loan options after initial consult. Def not speedy

 

Something isn't right here. 3 to 4 months for what I presume is a simple refinance, is very unusual. Did you ever ask them why it was taking so long and if so, what was the response?

 

They said they were short staffed at one point early on but thats it, its my first refinance so I didn't know the standard time frames

 

That's still quite unusual to be honest. If they were short staffed I would expect them to get back to me in a couple of days or at most, a week. Definitely not a couple of months.

Regardless, if you're happy with the experience and everything has worked out fine then all good. Perhaps something to aware of for the future if you intend on using their services again.

 

They got back to me within a week usually but there was so many steps to go through it was painful. It was actually longer then my original mortgage application

 

Usually I have refinance loan approved and printed same day, if credit assessment required (only if outside of policy) it's around 2 days. Documents in some cases can't be printed same day (guarantors, company/trust etc). After documents are signed it's 4 days for certification, then ready to settle waiting on the other bank.
Pending other bank can be 2 days up to a 3 weeks MAX.

 

Wow, def wont use them again then, that's ridiculous