When applying for a loan, assuming that there is no problem with LVR and LMI is not required, do the banks have a fixed cut off limit based on their servicability calculations or is someone able to exercise their discression in this area. What I am asking is whether it is worth my time and effort outlining why servicability is not going to present a problem. Will someone look at my individual case and even if they do will they be able to approve a loan that does not fit into their standard profile?
Regards
SonjaSonja,
Everything is open to justification.
Some lenders are better than others for different situations. If I knew your situation I might be able to suggest a lender who will be open to something.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sonja
If you’re going to deal direct with your bank – make sure you get someone who does have discretion – they do exist. Just go higher I guess…
there is not much point trying to explain it all to the branch manager if he/she cannot make the decision and has to refer it higher – or just say no!
Cheers
MelI would sugggest you get a mortgage broker instead. Their there to help you out, while a bank will tend to look after it’s own interests before yours.
Rgds.
Lucifer_auSonja,
In my experience most banks are firm with their policies, and once you give them the information they want they will make a decision based on that. Appealing to them with your own logic is not always effective, talk to a broker who knows how to think like a bank, but understand a client.
In general, if you don’t have a proven income to support the loan your chances may be slim… Are you self-employed? Perhaps a Lo Doc is the way to go?
However in saying that it really does depend on your situation, there are some banks that will look outside the square…
Try giving us a little bit more information on what your unique situation is, sometimes there are ways of approaching these things to fit in with the banks criterea.
PM me if you prefer
Liz Wilson
Mortgage Lender
And who knows, the ATO may even knock on your door asking you to explain.
I have seen similar comments in other posts about overstating income and potential Tax office implications, but are there not privacy laws which preculde the bank or financial instituion from giving the details about their loans to third parties?
James
James
The ATO has very wide reaching powers and can demand various private details about you from banks.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think the tax man could Supina the information if they wanted… as someone said earlier taxman is GOD…
What does everyone think of the Lo Doc’s available for under 65% where you declare “capacity to repay” NOT “I earn $XXX,XXX.XX”. Wouldn’t this save alot of grief… provided it was conveinient that you did not need 80%?
Thanks for your ideas everyone. I was trying to get a bit of an idea as to how these things work. Just one question for Rob though. Out of curiosity, who are HSBC???
Regards
Sonja
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