Hi All,
I've currently have a LOC with Commonwealth Bank. I tried to do a refinance but today my loan got declined.
My equity ration was fine, but I failed on the income side. They are also worried about the interest rate rise affecting my repayment ability.
So, should I simply sit around for a few years till my income goes up (ie rent) and then re-finance or should I try another bank?
Thanks in Advance for any advice.
Cheers
Nigel348Hi Nigel348
That is where a broker can come in handy, just because one lender knocks you back it does not necessarily mean the others will. Providing the full circumstances a broker may know which lender may take it on. I would be happy to help or any of the other brokers here feel free to contact us
Hi Nigel, and welcome to the forum. That knocks the wind out of your sails when that happens thats for sure. Sitting down with a capable finance broker may unearth a lender that assesses you slightly differently – enough to make a difference. Ask around where you are locally and see if anyone is recommended to you by other professionals. If you are still out marginally on your actual income, a lo doc loan (or no doc) which some lenders even do for PAYG (ie non abn holders) up to 70% lvr may be suitable as long as you can declare that you will have sufficient income through whatever means in the coming financial year to meet your obligations – strangely enough that would still likely be a better rate than your LOC.
There are other options too if these are not suitable. All the best.Hi Nigel,
As Wayne said, these are the perfect situation where brokers can come in handy. Most brokers are able to access numerous lenders and 100's of loan products.
Just because the CBA doesn't want or can't help you, that is just their loss. There are many bank and non-bank lenders in the market who would be happy and willing to help you in your future endeavours.
Happy to try and help if you need.
Good LuckSharlene
[email protected]It is funny i hear all day long about the CBA. They want to help you when they feel there is something in the deal for them and then drop you like a stone when you need them most.
As has already been mentioned a little more information would be needed to provide a suitable suggestion.
Bear in mind that there is a big difference between what one lender will allow when it comes to serviceability and the next.
Richard Taylor | Australia's leading private lender
Thank you very much for those kind words and support. I nneded that.
Yes, I felt pretty depressed last night. I had done everything right with the CBA. Even offering an LVR of 70% all the documentation they wanted, full disclosure and paid the interest etc.
Never have tried a Mortgage Borker before, so looks like I'll need to do some researching.
Thank you again for your support and looking forward to taking my business away from CBA now
Hi Nigel,
Good luck in your endeavours. There are Lenders who want your business and brokers who will be happy to work for you.
Sharlene
[email protected]Hi Nigel
Where abouts are you. Might be able to refer you to someone.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:It is funny i hear all day long about the CBA. They want to help you when they feel there is something in the deal for them and then drop you like a stone when you need them most.
.It is – and yet as a lender they are obsessed with putting the highest pressure on staff out of any major bank that I am aware of to 'cross sell' and 'meet quotas' and 'make budget' etc etc – No wonder they have such a high staff turnover too!
nigel348 wrote:Hi All,My equity ration was fine, but I failed on the income side. They are also worried about the interest rate rise affecting my repayment ability.
So, should I simply sit around for a few years till my income goes up (ie rent) and then re-finance or should I try another bank?
/quote]
Nigel,
(a) If you have provided the Bank your actual income and they decline, by all means look at another Bank.
(b) Do not be tempted to fudge your income under a Lo Doc scenario because if the Big C was concerned about your ability to repay, it would be with some basis in fact.
(c) Lo Doc lending rates are in the process of moving up as a result of barely functioning international credit markets (and not just rates for new loans) so take whatever rate you are offered, add .25-50% and then ask yourself how badly you want it.I think it is not only a matter of lodoc rates moving up but rates on full doc loans moving north over the next few weeks.
Have spent all day at an Anz Bank Golf Day i was told by their State Manager that they are really looking hard at the viability of 0.7-0.8% discounts they offer under the Pro-packs as these loans are just not profitable. This is the 2nd time i have heard that this week from major lenders so i think you will find that rates gernally may rise irrespective of the RBA rate.
The 90 swap rate was higher than than the cash rate for the first time since 1986 earlier this week and that has to tell you something about the direction of rates short term.
Richard Taylor | Australia's leading private lender
There are a couple of lenders who will provide a higher servicing level using fixed rates which could be a good solution – You would loose the flexibility of a Line of Credit but secure against the current interest rate climate and increase your borrowings.
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