Subject to finance

Sorry - I see what you mean. I didn't actually put "xx/xx/2020". I put in 28/07/2020. Which is 17 days from now.

Does that make my question clearer?

 

I wasn't talking about dates.
What if the vendor offers you finance at 13% p.a.?

 

Hi Jess, I currently have pre-approval from CBA, the contract date is 11/11/20, any idea how long CBA will generally take to assess my application?

 

They're quite slow ATM - did you use a broker or branch? Is it straight forward, or complex?

If you're pre-approved, it can still be 8-10 business days to pick it up for a look but your broker might be able to get it escalated for you.

Everyone is soooo slow atm.

 

We are using a broker, it is a simple straightforward case.. but the broker told us it would be "expected" to be fine..

 

What proof is accepted as "not satisfying" the "subject to finance"?

Would a screenshot of a 5 min online pre-approval test saying declined, be acceptable?

Or does it require a letter from a bank representative saying declined on a bank letterhead?

 

Not a solicitor so no legal advice but typically on Bank Letter head stating finance has been declined.
Can also use unsatisfactory building and pest inspection if that was a clause in your contract.

Have you actually been declined or are you just looking for a 'get out' ?

 

I have bid unconditionally on a property. But they want more money. So I might increase it but subject to finance. Property has already fallen over twice, once through subject to sale of another property and second time on finance.

 

Do you know if you can afford to borrow for the extra amount? I assume you checked max borrowing capacity before making an unconditional offer?

 

It's an extra $4k they want, but in case I want out, I want to make it subject to finance. I won't be using a bank for this extra amount.

 

You're considering pulling out over an extra $4K??
If you have the cash and the property is good I'm not understanding the logic. If I was a seller I would much rather an unconditional offer that is $4k less than a conditional offer all day every day

 

Vendor wants > 125k and I offered $110 cash. (2 bedder apartment). Counter offer of 115k. I said id go to 111k but any more I would need finance. Trying to get buyer to come down given last 2 contracts fell over on finance and subject to other property sale.

 

Ok making sense now
Man that's cheap! What kind of % return would you be getting on that if you don't mind me asking?

 

Around 5.5% when factoring in rates and body corp. Rent probably $250/$260 a week