Hi everyone,
I signed contract of sale on 30 May. and lodged my application on 3rd June thru Homestar Finance. Mainly due to the variable rate they offering and quick approval. Rang last wednesday (10th) and checking my application progress. Broker told me still at valuation stage. No valuer has been appointed until Monday (15th). and Valuation was done 2 days later.
Spoke to the broker again on 16th, he advise me it's till at valuation stage and just send my application to CBA and Heritage Building Society. He said now it's out of his hand and there is nothing he can do but wait. Is that true?? How long that gonna take.PS: I'm FHB and only asking 70% loan
The problem here is the settlement date is on 26th June. Vedor only agreed to sell me the property if and only if I can get a settlement with in 2009 financial year. I signed the conditional contract subject to building and finance.
Is there anyway to speed up my application??? Otherwise I might lose my "home"
So frustrated to explode.
Hi Yiima,
Given the current state of the finance market, you are not alone with your frustration and concerns.
If you were going to go to a different lender, the lead time would probably not see you settle on 26th June as lead times are a bit long with the banks. Most finance companies are not ordering the valuation until an approval has come through, and this is adding further delays to an already buckling system. It's also possible that someone delayed in ordering a valuation for you. If a valuation has been done, it should be close to getting through, however it sounds like your broker is not particularly supportive.
There is an alternative to get the transaction done for end of financial year – you can arrange vendor finance with the vendor – that way the transaction goes through before end of fin year, you get to keep your "home" and the finance can be a little late. There is a chance you'll have to pay a premium for that, but it's worth looking at as a back up option.
If the contract is subject to finance, it depends on the details of the clause as to what will happen – you're best checking with your solicitor regarding that. Keep on the broker too.
From a separate angle i assume that the Vendor was concerned for his CGT when he wanted a settlement in the Financial year 2009. Might be worth pointing out to the agent that the Contract date is the trigger for CGT and not the settlement date so if you settle in July he can still offset the gain / loss in 08/09.
Other than that i think you would be lucky for Homestar to have the loan approved by 26th July let alone June.
Richard Taylor | Australia's leading private lender
I agree that the date of exchange contract is use to calculate the CGT, NOT the settlement date.
I am not sure whether vendor finance will be a good idea in this situation.
My advise is just be patient and wait………..
4 days to settlement… Still nothing from the bank. Broker said he did everything he can, it's just a bad time.
I'm losing it……. OMG….Yiima,
Do you know why the vendor wishes to have a settlement this financial year? Are you aware of what the vendor will do with the property if it doesn't settle by 30/6/09?
Hi
I understand your frustration when you have finally got the courage up to move forward and take action and then things don't happen fast enough…. I would take up Richard's advice and check the vendor's reasons for needing settlement pre June 30 – if it is a CGT need and they're an investor then he/she's already covered by the contract date and they and you don't need to stress so much… That old saying about " courage to change the things you can, serenity to accept those you can't and wisdom to tell the difference" … has always helped me in the past….My loan still not going anywhere. I believe it's something to do with CGT. well, the critical date should be contract of sale rather than settlement day.
Seeing others got their loan in 3 weeks made me think I made a bad choice of getting loan from Homestar…At the end of the day at this point in time, even if you are not able to settle by the end of the financial year as by the request of the vendor, there is no alternative for them to find another buyer. Was there an ultimatium of buy it by the end of the year or no sale to anyone?, or was it a tactic to ensure settlement at a time optimal for the vendor. What I am getting at is will the vendor still complete the sale even if it is post June 30?
Qlds007 wrote:Other than that i think you would be lucky for Homestar to have the loan approved by 26th July let alone June.Unfortunately I've missed my settlement day due to turn around time of Bank. Well, seems some one finally looking at my application asked more information and I send it to them straight away. Hopefully, I've get the loan approval by the end of this week.
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