Hi,
I am planning to close one of my extra savings accounts with one of the major banks, as I no longer use it.
I was wondering if holding a savings account with them had any bearing to improving the likelihood of home loan approval with the bank in today's environment. I have a normal credit rating, young person, just started full time employment recently.
Thanks
Hi Magic,
Unless it is the only account you have with them, then it is unlikely to affect whether or not they give you a loan.
To be honest, even if you have nothing with them you probably have an equal chance – The only difference is that you would be seen as an 'existing customer', rathen than someone walking in off the street.
Cheers,
YIMagic hate to say i disagree with YI.
If you have an existing account with one of the majors (and i am not sure which one) i would keep it going for the time being as having the account could certainly increase the lvr available to you.
This is not to say you have to go that route but definately gives you options if needs be.
Richard Taylor | Australia's leading private lender
Richard,
I was under the impression that Magic has multiple accounts with one of the lender's, rather than a single account.
Magic, if you only have one account with that particular lender, leave it in place. If you have multiple savings accounts with the same bank, and one of the accounts is not being used I can't see what detrimental effect closing of the accounts would have on your chances of getting a loan or a higher LVR.
Regards,
YIOk i read it that it was 1 account with a major although he had other accounts spread elsewhere.
Yes totally agree consolidate your accounts if they are all with the same organisation.
Richard Taylor | Australia's leading private lender
Just to add.
Only Loan specific accounts will affect your ability to obtain finance.
e.g. Investment Loans, Property Loans, Business Loans, Lines of Credit, etc..
Saving Accounts are seen as a cash account by an organization providing financing. However, not the only thing factored in during due diligence for financing.
Cheers,
MiikeHi,
Thanks for the input guys.Just to clarify, the account is a savings/everyday transaction account for things such as wages and day to day expenses and atm withdrawals , not linked to any loan. And as I already have this type of account with another bank.
E.g. if I were to apply for a home loan for property investing in the future with SGB, CBA, or ANZ or would it make any difference in terms of approval or loan amount. It would be a first ever loan, if not then I would close it so that I do not need to pay monthly bank fees. I guess the other way to look at it is that it would probably not matter, since there would a lot of lender out there via use of a mortgage broker, and so it might not necessarily be one of the banks that I eventually get a loan with.
Ok magic noted.
Cant see an issue in closing it.
Richard Taylor | Australia's leading private lender
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