All Topics / Help Needed! / Bank gives me an approval before I signed building contract, now they declined approval. What to do??

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  • Profile photo of eldrednieldredni
    Member
    @eldredni
    Join Date: 2008
    Post Count: 31

    Hello,

    I just received an email yesterday from the bank.

    "Sorry to break bad news, however due to recent changes in the Banks lending policy, which I was unaware of, the maximum LVR for non residence is now 70%, with the only exception being if your wages are paid in a major currency (ie. USD GBP EUR etc). This is something that has changed since your last application (policy changed earlier this year), possibly due to the changes in the global economy.
    I’ve referred the application up to the state manager for consideration, given your connection with the CBA, without success.
    I’ve come to a dead end, having exhausted all possible options"

    Now I tell you guys the story.

    I purchased some vacant land in December settled in late Feb. So in the meantime I had asked the bank how much I can borrow the build on this land. They have given me an amount to play with, while getting building quotes. Found a builder. I ring the bank and said I am going to sign the contracts on Saturday can you give me a exact amount before I sign the contract. Gave an amount above what I actually required, this all happend the friday the day before. So I go in sign contracts as finance been apprved.
    5 days later I received the above email from the bank. Now not even able to borrow a single cent.

    My situation.
    I live in Norway and earn Norwegain Kroner. I have 3 other investment properties in Australia and also this vacant land.
    I have Fixed my home loans only 2 months ago for 5years.

    What to do??

    Options
    Move back to Australia get a permantant job.

    Or can I try another bank, considering all my loans with CBA, fixed and all tied into each other with security. Now that they require 30% deposit equity. I have no equity avaiable as am at around the 70%.

    Help

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    You might need to complain to the mortgage broker if you used one and if you do not get a satisfactory resolution then check out this web site http://www.creditombudsman.com.au/

    or if you did not use a broker then
    I think you should complain in writing to the CBA bank
    see
    http://www.commbank.com.au/contact-us/compliments-complaints/default.aspx
     as their change in policy after giving you financial advice on gaining a loan approval has caused you to be in a situation where you may suffer a future financial loss caused directly by CBA changing their lending policies.
    Then when you do not get a satisfactory resolution then check out this web site
    http://www.fos.org.au/centric/home_page/resolving_disputes/how_to_lodge_a_dispute/how_to_lodge_a_dispute_banking_finance.jsp#Getting_started

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes this has been a recent policy change with a few lenders however we have done many deals recently at an 80% lvr.

    In fact did a deal from another forum member only this week who was Dutch and we have obtained an 80% lend without a problem.

    Admitedly the amount of paperwork the lenders require is a bit more but nothing more than if you were a local.

    Richard Taylor | Australia's leading private lender

    Profile photo of eldrednieldredni
    Member
    @eldredni
    Join Date: 2008
    Post Count: 31

    Hi,

    But in Netherlands they earn EURO??

    I have written a complaint via websit
    http://www.commbank.com.au/contact-us/compliments-complaints/default.aspx

    should I write another complaint to he Obudsman???

    I am actually because of all this 99% sure we are selling up in Norway to move back by the end of the year.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    You can try but dont expect a quick response.

    At the end of the day the lender has the right to change policy and at the moment this can change daily.

    Richard Taylor | Australia's leading private lender

    Profile photo of eldrednieldredni
    Member
    @eldredni
    Join Date: 2008
    Post Count: 31

    They probably change it back in 1-2 years when interest rates start going up again when it suits them to borrow more money out.

    I think it meant to happen and I was suppose to move back to Australia or I should slow things down.

    Profile photo of keikokeiko
    Participant
    @keiko
    Join Date: 2008
    Post Count: 513

    I would write a letter and post it to the head person, doing threw internet site iam thinking would not get the same response. 
    I would do what duckster said and i would put in there that you are seeking legal action as you have signed these contracts and are now going to be charged large amounts of moneys and penalty's due to cba not going threw with what they said they would.
    I personaly dont like cba as a lender they are to tough, but i dont mind having my money in there bank because it should be secure

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