The Finance Approval Minefield

Comments

# Rav said on October 2, 2008 5:41 PM:

Is it true that the smaller guys like wizard, bendigo etc have thier approval process faster & easier than the big banks? If so why so many of us are with these big banks.

# Shannyn Hunter said on October 3, 2008 10:22 AM:

Hello Rav,

I do know that the smaller banks can offer a great rate but clients who use them seem to have more hassles in terms of satisfying their requirements so that they are ready to settle. And again it is a matter of pre-approval being very different to unconditional approval. Pre-approval may be quick but the bank is not locked in.

The smaller banks also tend to outsource their settlements to law firms which adds another layer of people to deal with - the link at the end of the article to 'Bully Banks Cost Battlers Millions' is about the unnecessary certificates these law firms require to be paid by the client.

http://reic.com.au/blogs/australian_real_estate_blog/archive/2007/04/30/bully-banks-cost-battlers-millions.aspx

That said, a lot also depends on the purchaser; the bank they choose, if they have read all of the documents, complete and return documents quickly, understand the amounts involved, if they have enough savings for a deposit and later on to pay stamp duty and registration fees at settlement - not all loans include this, and if they have an experienced broker or banker. If the purchaser does all of these things they will find the process a lot easier.