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Trouble getting mortgage?


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#1 bubzillaiscoming

Posted 09 January 2013 - 12:45 PM

DH and I are homeowners and also have an investment property. We have been looking for a bigger home for a few years now and finally purchased one original.gif We had preapproval from the bank for an extortionate amount of money and spent approximately half of this amount on our new house.

The bank has been a nightmare.

We provided all the documentation required very early on in the process. They came back and asked for additional info eg we provided payslips, group certs, rental statements, they came back and asked for the actual tax returns and more up to date rental statements (we gave them the most up to date ones we had at the time, which were the most recent ones). We provided them with the additional information they required and were assured that once this was done the loan would be unconditional.

They have come back today asking for even more information/documents!!!! I am getting so upset as I don't understand why this is soooo difficult when we are only borrowing half of what they offered us. Admittedly since pre-approval I have gone on family leave, but we were very upfront about that at the beginning.

Is this normal post GFC??? We are supposed to settle at the end of Jan and I am getting so stressed that we will lose our (very substantial) deposit. We told the broker today that we wanted to look at going with another lender and he has lodged a complaint with the bank on our behalf.

Anyone else had an experience like this? We are very fiscally responsible (not that the bank cares) so am struggling to understand why this is so hard  sad.gif

#2 bubzillaiscoming

Posted 09 January 2013 - 01:13 PM

Any one?

#3 Apageintime

Posted 09 January 2013 - 01:17 PM

The pre- approval is conditional, so I wouldn't take the amount on that as gospel (even though you're only borrowing half) as this amount is calculated using only very rough data.

Unfortunately if you want the loan you'll have to give them the paperwork.

Is your settlement subject to finance?

#4 CountryFeral

Posted 09 January 2013 - 01:20 PM

Have you approached another bank?

I think if you suggest to your current bank, whom I assume you have all your other mortgages with, that you are looking to shift ALL your business elsewhere they might get a bit of a zing in their step!

#5 bubzillaiscoming

Posted 09 January 2013 - 01:22 PM

No not subject as we were told we would easily be able to borrow that amount!

Obviously we will provide them with the documents, but it seems like they are asking for above and beyond what is required for a 'normal' mortgage and I am wondering if the processes have changed since the GFC?

Last time we just handed over the documents and got approval, non of this to-ing and fro-ing and STRESS! I am getting myself into such a state and there is nothing I can do, I just have to sit and wait. Ugh!

#6 bubzillaiscoming

Posted 09 January 2013 - 01:23 PM

QUOTE (countrymel @ 09/01/2013, 02:20 PM) <{POST_SNAPBACK}>
Have you approached another bank?

I think if you suggest to your current bank, whom I assume you have all your other mortgages with, that you are looking to shift ALL your business elsewhere they might get a bit of a zing in their step!


We brought this up today. I just feel like we are low risk compared to some stories that you hear (and even some of our friends) but I guess the bank is being super cautious! I know now why people say it is so stressful moving house!

#7 BlueEyedBeauties

Posted 09 January 2013 - 01:24 PM

I was going to say what countrymel said -
take your business elsewhere, or at least tell them if its so hard you will consider taking it elsewhere.

Unfortunately when it comes to lending/borrowing etc, its painful.

We are with Credit Union Australia and have never been happier. They just make life so easy.
We have a loan through St George bank and I would never touch them again in my life... they are a pain in the butt.

I would seriously look at changing your lender.

#8 intd242

Posted 09 January 2013 - 01:25 PM

What is the broker saying about the process? I'd think he should be able to shed some light on what is going on and if he can't I'd wonder how good he was and if you should be taking to someone else.

ETA - ok, broker could be doing all he can do, but I'd think he should be in a position to ease some of your concerns re getting the money one bank or another.

Edited by intd242, 09 January 2013 - 01:29 PM.


#9 lamarque

Posted 09 January 2013 - 01:31 PM

We had no problems getting our mortgage when we were both working full time.  Once I went on maternity leave we decided to sell up and buy elsewhere - our current bank didn't want to know about us with only one income and we had to go to another bank.

#10 bubzillaiscoming

Posted 09 January 2013 - 01:32 PM

QUOTE (intd242 @ 09/01/2013, 02:25 PM) <{POST_SNAPBACK}>
What is the broker saying about the process? I'd think he should be able to shed some light on what is going on and if he can't I'd wonder how good he was and if you should be taking to someone else.

ETA - ok, broker could be doing all he can do, but I'd think he should be in a position to ease some of your concerns re getting the money one bank or another.


He keeps telling us with each step that the loan should come back unconditional - which is what the bank is telling him. I think the bank is messing him around too. The bank agreed to send a valuer out to the investment property but didn't bother to let the broker know when even though he was waiting for the confirmation ... we got the info from the real estate agent.

If time wasn't a factor I would be saying we should definitely change lenders ... I'm just worried we have left it too late...

#11 julzely

Posted 09 January 2013 - 01:33 PM

I had heaps of back and forth with the bank to get my home loan 3 years ago.  This was because I was a contractor.  I needed to provided 2 tax returns, bank statements, a letter from my boss, a employment history, a letter explaining gaps in my employment history along with all the normal stuff.  They then also called my boss to check that they had every intention of keeping me on for the time being.

It was a royal pain in the backside, but I did eventually get the homeloan.  

I would think they are being difficult because you are on leave at the moment.  Maybe get a letter from you employment stating your intention to return to work at the end of you leave.  

I would also ask more questions about what they are concerned about so that you can provided them with the information they need.

Good luck hopefully your loan comes through soon

#12 bubzillaiscoming

Posted 09 January 2013 - 01:35 PM

QUOTE (lamarque @ 09/01/2013, 02:31 PM) <{POST_SNAPBACK}>
We had no problems getting our mortgage when we were both working full time.  Once I went on maternity leave we decided to sell up and buy elsewhere - our current bank didn't want to know about us with only one income and we had to go to another bank.


Yeah I am thinking this is part of the problem too (and I feel a bit guilty) I am going back 1 day a week this year but don't start until Feb, so again the bank doesn't care or want to know about it. I am also only on leave so could (in theory) go back tomorrow as my job is ready and waiting, but this doesn't factor in.

#13 item

Posted 09 January 2013 - 01:35 PM

I'm not sure what it's like now, but 6 months ago, we had to dot lots of i's and cross lots of t's and the whole thing took a ridiculous amount of time compared to our pre-GFC 100% finance loan.  

Our purchasers had the same issues (thankfully we'd been through it or we might not have believed them) but our unconditional approval literally took 3 months.  Every time they asked for another or updated document, our application went back to the front of a queue and it was three days before a human laid eye on it again.  DH is self employed so there was more paperwork than normal.

We ended up going with ING and ditching the bigger banks as we were sick of wait times and shoddy customer service.

My advice would be to talk to your solicitor - A) they will know what the general state of affairs/wait times are across lenders (in our case everyone was refinancing and also the banks had just slashed loans staff numbers) & B) if there is likely to be a delay, it's best to let the other side know promptly and negotiate early.

#14 Mistress_Mel

Posted 09 January 2013 - 01:44 PM

My Dad is a mortgage broker and it depends on the individual policy for each bank/building society as to how much paperwork they request. It also depends on the 'product' you are buying.  He refuses to recommend banks that require OTT paperwork.

Try a mortgage broker company (of which there are many) to do an overview of all avalible products in Oz to suit your circumstances.

They will come to your house at a time that suits you and do the figures. Some companies will do this for free-my Dad's one does. They get commission only if you go with them to sort out a loan. But all info in early stages is free. Worth getting a global view of what's out there....these brokers are also local small businesses as opposed to people working for big corporations, so you will be putting money into your local area if you decide to use one in the end.

Good luck!

#15 malibu71

Posted 09 January 2013 - 01:47 PM

I have worked as a lender in a bank and this could be a couple of things, there could be genuine issues, the broker is not telling you everything, the people he are dealing with don't know what they are doing.  Is your new loan going through the broker to a bank you are dealing with currently?  If so go direct to the bank and ask them what is going on - they can see what is happening with broker loans, I had to do this a lot.  Whilst I understand the appeal of brokers I prefer to deal directly with the organisation I'm going to have to deal with after the fact, otherwise you have no idea what the service level is that you should expect.  Your broker could be amazing but the company they put the loan through could be terrible.... Just something to think about.

#16 barrington

Posted 09 January 2013 - 01:47 PM

Can I ask how long ago you were given pre-approval by the bank?

#17 bubzillaiscoming

Posted 09 January 2013 - 01:54 PM

QUOTE (barrington @ 09/01/2013, 02:47 PM) <{POST_SNAPBACK}>
Can I ask how long ago you were given pre-approval by the bank?


The preapproval was a while ago (maybe 1 year), but we have other business with the bank and have also been in touch with the bank about several other properties we were prepared to buy at auction - although we weren't successful at any of them. So there is a relationship there and they were aware that we were serious about buying and would do so when the right property came along.

I like PPs suggestion of contacting the bank direct. I feel like I should be able to pick up the phone and demand to know what is going on!!

#18 BeYOUtiful

Posted 09 January 2013 - 01:57 PM

Was the pre approval done based on both of your full time incomes?

Let's just say Brokers can be a pain in the tush too.

#19 bubzillaiscoming

Posted 09 January 2013 - 02:02 PM

Just spoke to DH who has spoken to the broker. Apparently the loan has been approved by 2 assessors at the bank and was given to the Senior Assessor for final approval. It is this serior person who has asked for more documentation.

So the broker has put in a complaint saying it is unreasonable asking for the extra info and we should hear today if the request has been over turned or not. Otherwise we will have to dig out the docs to get them to the bank early tomorrow morning. Lordy - it isn't easy.

I have told DH that if I haven't heard anything by 4:30 I'll be ringing the bank and demanding a meeting. I am sick of this!!!



#20 bubzillaiscoming

Posted 09 January 2013 - 02:05 PM

QUOTE (~Jane05~ @ 09/01/2013, 02:57 PM) <{POST_SNAPBACK}>
Was the pre approval done based on both of your full time incomes?

Let's just say Brokers can be a pain in the tush too.


It would have been done on DH's full time and part time income for me.

I just get so frustrated that they keep trying to encourage us to borrow more (when we bought this house they suggested we borrow extra and buy a jet ski to put in the garage. wtf?) and take out credit cards etc but when we actually need a loan they are soooo cautious!

#21 item

Posted 09 January 2013 - 02:05 PM

QUOTE (bubzillaiscoming @ 09/01/2013, 01:54 PM) <{POST_SNAPBACK}>
I feel like I should be able to pick up the phone and demand to know what is going on!!


We have done this before.  You have to call the brokers/B2B section and then have a very frank exchange of views.  Once I threatened to drop an application, was smugly told no-one else could help me faster etc etc.  I explained I was prepared to miss out on a property and gave them an estimate of the interest they would be forfeiting (they wanted 3 working days to get someone in the next room to sign off on a piece of paper) of course it was done by 5pm that day.  We went ahead with that loan, but I will never do business with that bank again.

Good luck - don't take it sitting down.  You sound like you have more leverage than we did at the time.


#22 PeggyLou

Posted 09 January 2013 - 02:10 PM

We recently refinanced our mortgage through the same bank as what it was through.

OMG, nightmare.
We had our house valued, by one of their valuers, they then decided it needed to be done again.
We gave all documentation that they asked for and then every other week, we'd have a phone call or email from our broker saying the bank needed something else.

We started to get slightly snarky at our broker, but it wasn't his fault. He put a complaint into the bank.

All in all it took about 6 months in order for it all to go through. Ridiculous.
But apparently they are putting everyone through the ringer these days.

Our credit history is impeccable, the amount we were refinancing for was minimal and yeah. It took forever!

Finally done now though.

#23 FluffyOscar

Posted 09 January 2013 - 02:13 PM

Pre-approval 12 months ago! Wow, that is a long time.

I note you're homeowners and have an investment property - but you also pay rent? So you have 2 IPs? Are they both negatively geared? The bank is probably concerned you're a risk based on the fact that your home loan amount will be more than they'd approve on one income with dependents.

#24 FeralLIfeHacker

Posted 09 January 2013 - 02:19 PM

QUOTE (PeggyLou @ 09/01/2013, 03:10 PM) <{POST_SNAPBACK}>
We recently refinanced our mortgage through the same bank as what it was through.

OMG, nightmare.
We had our house valued, by one of their valuers, they then decided it needed to be done again.
We gave all documentation that they asked for and then every other week, we'd have a phone call or email from our broker saying the bank needed something else.

We started to get slightly snarky at our broker, but it wasn't his fault. He put a complaint into the bank.

All in all it took about 6 months in order for it all to go through. Ridiculous.
But apparently they are putting everyone through the ringer these days.

Our credit history is impeccable, the amount we were refinancing for was minimal and yeah. It took forever!

Finally done now though.


aggh this scares me so much as someone looking at selling and buying this year.  The more I read the more I am thinking about staying and renovating/adding on.

#25 Mel.Bell

Posted 09 January 2013 - 02:30 PM

Sounds like you are having the same problem as we did. DH & I wanted to borrow only $250,000 & were approved for so much more. It took them MONTHS (!!!!) to get everything together -We went with a broker too. He kept asking for more recent payslips, HECS debt statements etc when it was HIS fault he didn't get the loan started when we gave him our most recent ones at the beginning!. We thought we had everything settled as we didn't hear back from him for a couple of weeks & he said he would contact us if anything else was a problem so I called him ... He said I needed to take my Credit Card down !!! WHAT THE?!?!?! I understand why but he should have called us, like he said he would, if anything else was a problem!! I so get your frustration as our plans had already been approved by the council & our builder wanted to get started as he was putting all other building projects on hold to focus on building our new house. Everything is now sorted out but was a nightmare. Our broker straightened up when I threatened to take our business to another broker in town as I know they are against each other. The borrowing amount wasn't a problem (like yours), it was just all the paper work that SOMEONE wasn't getting organised. It's like the bank/broker didn't want our business ... Did you get that feeling too?


PS We had pre approval 3 years ago & DH has had 3 pay rises since & got a second job which doesn't affect his first job.

Edited by Mel.Bell, 09 January 2013 - 02:31 PM.





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