Now that the financial year has ticked over, our Plan Assist Mortgage Advisory Team are finding client loan applications are moving faster through the banks. Instead of 30 day approval times, we are now down to 4 days or less, which is great news for purchasers.
The only downside to this is that lenders are quicker to say “no” to loans if anything is wrong. This could be one of the most challenging years in finance and most people planning on buying property in the coming year are still yet to find that out.
Its now more important than ever to talk to a professional mortgage broker – call us on 02 9449 2333.
In the last 2 weeks, the banks have toughened up and now want to see borrowers capable of repaying a 95% LVR Home Loan.
Banks now require “5% Genuine Savings”, to be proven by showing 3 months bank savings account statements. All large deposits have to be explained, and Mum & Dad throwing $10,000 into the account is not Genuine Savings. Neither is the First Home Owner’s Grant.
Example: Son wants to purchase First Home worth $400,000. Has good income/job.
Currently lives at home with Mum & Dad. Also has a personal loan which he repays $300pm.
Bank Requires:
a) Personal Loan Statements or credit card statements showing past 6 months repayment history
b) At least $20,000 (5%) in a savings account
c) Last 6 months statements showing a gradual increase in savings, building the deposit. Explanation of large deposits.
If Genuine Savings cannot be established, then the next best option is a 90% LVR Home Loan where you do not have to prove Genuine Savings and Mum & Dad can help out with cash.
To find out more about these recent changes, please call our Plan Assist Mortgage Team on 02 9449 2333.