Browse Forums Home Finance 1 Jul 25, 2009 2:59 am A nightmare. I will summarise our experiences below. Its fairly complicated, so I'll try to simplify as much as possible. Hopefully this will provide some insight to those looking to apply for homeloans in the current climate/future. Notes: This only applies to those with <10% deposit/savings history. 1) We apply to a well known broker franchise. Nervous, but they work out a plan which apparently will be fine as long as our family becomes the guarantor. 2) Several weeks later the loan is declined by the [bank] due to inadequate savings history. Although the type of loan had the feature that it did not require a savings history. The broker is apparently baffled. We consult our conveyencor/solicitor who advises us to use his in house finance guy. We do. Although our broker says just go ahead with applying with a different bank. We say hold on this, our soliticor says he has the answer with his special "relationship/contact" inside the bank. 3) Several weeks later... this finance guy at our soliticor says, after blah blah blah I played golf on the weekend, blah blah my heater broke yesterday, blah blah blah hows your mother, blah blah i'm literally charging you by the hour and just talking crap, says our family needs to refinance their own mortgage with the [bank] with a much much (read: !!much!!) higher interest rate in order to secure the loan - Becomes fairly defensive and not so nice when we advise hey, I don't want my father refinancing his mortgage at a crazy higher interest rate. Pressure Pressure. (danger danger!!!) This is not something my family is willing to do, and in general, seems fairly ******* when consulting friends and family. Our original broker agrees - it seems our solicitor is looking to grab not only my loan, but my families mortage, and offer it up to the highest bidder. I politely say, well, my father isn't willing to do this. Is there any other option? Suddenly he stops talking about his golf and just ends the conversation. Flip to (negative personality) - "Keep in touch" (hah!)" bye. 4) More than two months after beginning the process, we are pretty much forgetting about it. Our original broker (who I trust, as he speaks in plain english consistantly) is looking at an option with a second bank, however personally we feel that it just won't happen for at least 6 months when we have a good 10% deposit. 5) Generally it seems when your in the market for taking out a mortgage there will be sharks in the water willing to tell you anything. Do beware, as you will be screwed unless your educated. Be prepared. Forget it unless you have a decent savings history. Take whatever they say with a grain of salt. And most important --- Trust your gut feeling. So, in summary - It might seem common knowledge to many here, but to some "newbies" to the home loan market, it does'nt. Get a good 10% deposit. Trust a broker that you really feel comfortable with and stick with them. Don't take no bull. Remember - money is the root of all evil, and sure as hell they all will say whatever needs to be said! One significant thing I left out - the land we purchased. We had 2 weeks to come up with the deposit. Anyone whose come up with finance knows you can't get a several hundred thousand dollar loan in two weeks. Nevertheless, the vendor, which shall not be named, declined the extension, for simply the reason that it means they can increase the price of the land. Trust the vendor not. Sales person perhaps, they can be quite helpful - but the nameless jerks in their head office, no. So yeah, just some forewarning to those new to it all... Goodluck Re: Applying for a Homeloan during the Global Financial Crisis.. 3Jul 25, 2009 2:02 pm He did'nt mention a 'solicitors mortage fund' but perhaps it was. One other thing I did'nt understand, he said that using the equity in my parents home specifically meant refinancing their home. I had thought that using the equity just means showing you have the assets to back up the loan, not refinancing the thing and giving it to another bank... sydney guarantor home loan 4Jul 29, 2009 3:01 pm ibfragalot99 He did'nt mention a 'solicitors mortage fund' but perhaps it was. One other thing I did'nt understand, he said that using the equity in my parents home specifically meant refinancing their home. I had thought that using the equity just means showing you have the assets to back up the loan, not refinancing the thing and giving it to another bank... Clarification: Using the equity in your parents' home means taking a first mortgage or second mortgage on their property to reduce the risk of your home loan. There are several lenders that will accept a second mortgage so your parents do not have to refinance. I had posted on this topic a few times before. Can you give advice on how to get missing certificates needed for a form 21? Our bank requires us to provide one but we are missing 4 building certificates from our first… 3 71807 i would suggest nothing is unreasonable for PCI. we did all sorts, including checking the hot water, checking all the GPO's had power, testing that the showers were… 9 98679 Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81712 |