recent article, one of the largest mortgage brokers in Australia has
indicated that the Banks are knocking back up to 130 prospective buyers a
week.
The Banks are tightening their lending criteria and they will continue to
knock back high LVR loan applications if:
- Buyers do not have a genuine deposit
- They have not been employed in their job long enough
- Borrowers do not have a track record of savings
The Loan to Value Ratio has also tightened. The Banks are no longer giving
100% loans....those days are gone. Banks are going back to a traditional 80%
loan which means that they will lend 80% of the value of the property. You
need to have a 20% deposit.
Whilst some Institutions are doing loans above 80%, borrowers will need to
have a great track record, such as evidence of a regular savings plan of at
least 6 months, long employment with the same employer and other factors.
The Banks are closely scrutinising overtime payments and employment
conditions as part of the loan process.
The key here is to plan your purchase at least 6 to 12 months in advance.
Talk to a good mortgage broker at the initial stage to make sure that you
fit the criteria to get a loan. If you cannot satisfy some requirements,
works towards rectifying those issues before you look at property. Always
have a loan pre-approval before you look to buy.
Also look at getting a copy of your Credit History to make sure that there
are no bad notations on your file.
In an effort to help buyers that would love to live the Australian Dream and
buy a home of their own, but find it difficult to borrow from the Bank, the
team at Carver Lawyers have developed a Home Ownership Program that helps
buyers into the real estate market. If you would like further information,
you can contact Dean Carver, Property Lawyer on Sydney number (02) 9773 4550
or by contact through www.carver.com.au. You can also view our dedicated
Home Ownership Program site at www.ozihome.com
For a full copy of the article.....click below
http://www.news.com.au/money/lenders-say-no-to-loans-as-buyers-knocked-back/
story-e6frfmci-1225875970785
Dean Carver
Solicitor
Carver Lawyers
Web: www.carver.com.au
Twitter: http://twitter.com/carverlawyers
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