Browse Forums Home Finance 1 Sep 26, 2009 3:18 pm My younger brother has just been informed that his loan was rejected (by Bankwest). To give you some background, two months ago he applied for home loan with Commonwealth via a broker, but was rejected because he was on a full-time but casual employment. Then last week he applied to Bankwest directly, this time we was already on full time permanent position in the same job with the same employer. But it was rejected again because when they did a credit check, they saw that he was previously rejected by Commonwealth just a couple of months ago. I find this reason pretty ridiculous because he is already employed permanently, and i dont think they bothered doing a proper check and see the reasons why his first application was rejected. To reject just because someone else already rejected is not fair. And to make matters more stressful for him, he has already put an offer on a property because Bankwest had provided him with a pre-approval!!! Just goes to show that their pre-approval means jack sh!%. Please advise what he should do? Is it possible to explain to the bank and ask for a re-assessment? 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Need advice with loan rejection 2Sep 26, 2009 4:19 pm I don't have a finance background so can't comment with any professional knowledge........however, I'd suggest that your brother goes with a mortgage broker (any commission is paid by the bank/credit union, not you). This way the mortgage broker can negotiate on the person's behalf. Further, our mortgage broker (ABC Mortgages) did preliminary calculations first, so that you don't waste your time & not to mention the heartache. If the broker approves you then you nearly are guaranteed to get the loan. Best of luck to your brother. Re: Need advice with loan rejection 3Sep 26, 2009 6:22 pm It's better to be rejected than evicted. The banks are tough now, if you cant afford to pay it back, they dont lend it. Re: Need advice with loan rejection 4Sep 26, 2009 8:03 pm Also something to ask - is Mortgage Insurance involved? Because if it is the Bank has no say in the final decision it is always up to the MI company and they are really tightening the screws on all applications since the credit crunch. Some things are worth waiting for. Re: Need advice with loan rejection 5Sep 26, 2009 10:53 pm He's taking a 79% LVR. He said he'll go speak to the lending consultant at the branch he applied with to see whether they can discuss his situation. Hope it all goes well. He's also a first home buyer, so it's pretty heart breaking for him when the bank gives you a pre-approval then a week later says No. What I dont get is that before they gave him a pre-approval, they already did a preliminary credit check of some sort, and have reviewed his financial situation, employment, and salary etc. And he made it clear to them that although he was working for awhile, his employment only became permanent recently. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Need advice with loan rejection 6Sep 27, 2009 12:23 pm Bankwest are now part of CBA so maybe Bankwest have had to adjust their lending criteria to satisfy the CBA honchos. Friends got declined by CBA previously but okayed by BankWest (this was before the GFC and CBA takeover) Re: Need advice with loan rejection 7Sep 27, 2009 12:32 pm franklin_guy Bankwest are now part of CBA so maybe Bankwest have had to adjust their lending criteria to satisfy the CBA honchos. Friends got declined by CBA previously but okayed by BankWest (this was before the GFC and CBA takeover) ^^^ We got approval from CBA and rejected from Bankwest...Go figure, banks are f***ed these days! aLLaNNa1 I hope your brother can sort something out, tell him not to give up there will be someone out there that can help him, he has to keep fighting for what he wants. Best of luck! Building Thread viewtopic.php?f=31&t=13002 Site start: 8th July 2009 Handover: 11/12/2009! 5 months total build time. 40 sqs of luxuary...Bliss! Re: Need advice with loan rejection 8Sep 27, 2009 3:54 pm aLLaNNa1 My younger brother has just been informed that his loan was rejected (by Bankwest). To give you some background, two months ago he applied for home loan with Commonwealth via a broker, but was rejected because he was on a full-time but casual employment. Then last week he applied to Bankwest directly, this time we was already on full time permanent position in the same job with the same employer. But it was rejected again because when they did a credit check, they saw that he was previously rejected by Commonwealth just a couple of months ago. I find this reason pretty ridiculous because he is already employed permanently, and i dont think they bothered doing a proper check and see the reasons why his first application was rejected. To reject just because someone else already rejected is not fair. And to make matters more stressful for him, he has already put an offer on a property because Bankwest had provided him with a pre-approval!!! Just goes to show that their pre-approval means jack sh!%. Please advise what he should do? Is it possible to explain to the bank and ask for a re-assessment? A little confusing; he applied to cba and got declined then bankwest pre approved and they now declined after his position became permanent. All banks have differing credit policies regardless of corporate ownership so I can understand how one declines and the other approves. Is he under a probationary period now that he is a permanent employee? Re: Need advice with loan rejection 9Sep 28, 2009 10:51 am Im confused too! He's been with that company for just over a year, and his letter of confirmation (into permanent position) makes no mention of probationary period. He was already 1 month into his permanent position when he applied with Bankwest. Maybe they just felt it wasn't enough? Franklin_guy, my initial suspition was the same as yours....in that since BW is now under CBA, they probably thought they would just follow whatever decision CBA made in the first instance. I know that pre-approval's are no guarantees, but my frustration is with the fact that they provided this person with a pre-approval after making initial credit checks and verifying his situation, only to reject a week later after he had already put an offer on a property he really liked. They did not even bother to ask him why his initial loan application was rejected. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Need advice with loan rejection 10Sep 28, 2009 10:58 am This is what I keep trying to tell my friend who works under a contract as a casual, get a full time job, keep it for as long as possible. The banks only see black and white, they see full time or casual and also the time employed under these conditions. There must be some sort of waiting period before the bank will do it's own legwork, that's my guess, at the moment they are just riding on the back of the bank that has already done the snooping around. Re: Need advice with loan rejection 11Oct 01, 2009 2:52 am Bankwest pre approval experiences have been becoming a common topic here lately. Re: Need advice with loan rejection 12Oct 01, 2009 9:47 am If hes only just become permenant then that will be the reason as hes still on probation probably. Find out if thats the reason but I suspect it will be! Then he will just have to sit it out, I wouldnt think they would reject him just because hes been rejected before Re: Need advice with loan rejection 13Oct 23, 2009 2:17 pm Update: good news! after what seemed like an eternity, going back and forth with bankwest, they've finally granted unconditional approval to my brother at the end of last week! amazing! to make things even better, the seller was kind enough to wait all this while for his finance to be sorted. so he's now looking forward to settlement of his first home in about 3 weeks time. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Need advice with loan rejection (good news!) 15Oct 26, 2009 1:11 pm Im glad that a good result was able to be found for this one Alanna. I found this topic interesting as well. Mainly due to CBA having broader credit guidelines than Bankwest do. Yes BW is a part of (but different to CBA) but they have tighter guidelines. I would be interested to see what reason CBA declined on. As they are one of the few lenders that will look at a sub contractor as if they are full time employed as long as they have been there a while and do not have to supply materials in their role. Ie, plumbers, carpenters, Computer technicians on contract/Self Employed. .. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: Need advice with loan rejection (good news!) 16Mar 22, 2010 12:20 am I also went through this situation. The banks don;t inform you that if an attepmt at a home loan gets rejected by a bank it effects your ability to get a loan with anyone else even if your circumstances change. grrr. I personally wouldnt hav attepmtd to get a loan on a casual job as I was commencing a full time job. very annoying.... Re: Need advice with loan rejection (good news!) 17Mar 22, 2010 4:08 pm Yes unfortunately just applying (not necessarily getting) credit can affect your future attempts. Be careful with credit cards too. They take your limit into account. St George recently decided to give us 2 free credit cards when we took out our last loan. Now it comes up that we have $24,000 extra credit. Even though we never activated them. I must go in and cancel them. Our other credit cards are paid off each month but the limit is what they look at. I recently reduced the limit on those too. Re: Need advice with loan rejection (good news!) 18Mar 25, 2010 10:40 pm interesting indeed. we have an interesting situation where we have an approved loan( signed doc and all) with CBA. this loan is 80% lvr. we want to get a 90% one so we applied to bankwest and this time my spouse is the sole applicant( i am studying now until year end). BW has given us a pre approval. just wondering with this merger btwn cba and bankwest, if there will be any complications. VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Need advice with loan rejection (good news!) 19Mar 29, 2010 1:53 pm Pepto you need to check your docs. If you have signed them already, you have a binding contract.. there would be fees to break this. Bankwest and CBA are different entities un to themselves. Just because CBA owns Bankwest doesnt necessarily mean it controls it. They have different policies and products and each have their own strengths and weaknesses. Preapprovals are great to have. But do not GUARANTEE that the lender will provide the funds to you. If your circumstances change, lenders policy alters, rates increase or any number of criteria vary from either side of the equation then most lenders will reassess the application. Some lenders such as CBA will be more likely to honour their preapproval/homeseeker decision others will reassess at the time of converting to a full approval. A good rule of thumb is that if you have a preapproval from a lender (a full preapproval, not just a subject to everything preapproval) then it is best to aim for this being valid for about 1 month even if it is for 3 months. The longer it is in play, the greater chance there are of things changing. Also, be wary. If you have a loan enquiry with 1 lender, then you go to another lender and they find out your file was declined by another lender. This can make them uneasy. They dont necessarily know why your file was declined but the fact that it was gives you a perceived higher risk. This is not exclusive to Bankwest and CBA. Hope this helps. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 Levelling compound Ardit is the best but buy a bag of sand and make sand dam to protect your wood floor 2 15259 XCEM Alpha flooring seems to relatively new and I could not found any reviews. 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