Need home loan advice | Page 3 | BigFooty

Need home loan advice

Discussion in 'Money' started by Beauy420, Nov 2, 2016.

  1. PieLebo87

    PieLebo87 Hall of Famer

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    I’d agree with you but it astounds me the amount of customers in retail we give a borrowing capacity to, only for them to go to a broker who miraculously gives them a higher amount using our own same policy. I guess the general living expenses magically change when the broker is writing the deal. If anything, it is now paramount that we ensure we don’t get our customers into financial hardship and the priority (finally) is to ensure both the bank and customer are well protected instead of worrying about ‘the sale’.

    That’s all I’m saying, there are a lot of shite ones out there. I never said there aren’t any good ones. It’s far easier for a shite one to do dodgy deals than it is for a bank worker directly, because burning one bridge than dealing with another bank is far easier than throwing away your entire employment.
     

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  2. Hamingja

    Hamingja Norm Smith Medallist

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    I had one once from a broker where there were two couples that were buying an investment property together. They both claimed to have recently built a granny flat out the back of their owner occupied properties and produced rental appraisal letters for them. They needed this to service so I'm calling bullshit on this right away but to top it off we had both the owner occupied properties as securities and they did all their banking with us. Quick look at their accounts and no payments to builders or anything like that, no applications for consent to vary their securities, nothing. I declined it and about a week later got a call from the broker tearing shreds off me because the customers walked into a branch after I declined it and some chump at the branch approved it and of course the broker misses out on his commission in this scenario and the bank still writes the loan.
     
  3. PieLebo87

    PieLebo87 Hall of Famer

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    I can catogorically tell you it wouldn’t have gotten through my credit coaches. I’ve had the exact same scenario which I had to decline because the bank cannot use rental income in any capacity for an owner occupied property. Either that banker has put their their owner occupied property as an investment and added rental expenses to their application or they’ve BS to the bank. Definitely cannot use rental income for an owner occupied in our policy. I getcha though, there’s unethical practices everywhere, thus the royal commission.
     
  4. kaiserchief13

    kaiserchief13 Brownlow Medallist

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    Why can't someone rent out a room in an owner occupied and use that rental income in the assessment? Because it's too hard to police?
     
  5. chargers 09

    chargers 09 Premiership Player

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    How would you verify it? And confirm it will be long term?


    Sent from my iPhone using Tapatalk
     
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  6. Hamingja

    Hamingja Norm Smith Medallist

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    You generally won't use it unless it is an exceptional situation and you only need a small fraction of it to get a deal to work but the way you would verify it is from a tax return. Most people are not declaring the income to the tax man though are they.
     
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  7. chargers 09

    chargers 09 Premiership Player

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    Well that’s what I meant, the income one of the other posters was taking about earlier is unable to be verified.


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  8. PieLebo87

    PieLebo87 Hall of Famer

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    As per our policy, we can’t use any rental income for an owner occupied property, but if it’s proven to be true beyond reasonable doubt (tax return, rental agreement ect.) we can use a policy waiver.
     
  9. Simon_Nesbit

    Simon_Nesbit Brownlow Medallist

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    Wow, that's exactly the opposite of how Mortgage Brokers and Banks operate. The time commitment to getting a loan through for a new client almost invariably makes them low or no-profit cases. It's repeat business that is the lifeblood of the Broking industry.

    Similarly, banks maximise profits through giving minimal service/retention to existing customers, and relying on general laziness of the population to not both researching or refinancing.

    You must have had a really lousy broker.

    Edit: Reading further - or work at a unicorn bank
     
  10. PieLebo87

    PieLebo87 Hall of Famer

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    As I said previously, I only comment because of the regular complaints I receive from broker customers. Once the commission is paid, a few simply go AWOL and the customer is left stranded.

    Bank profits rely on customer retention too, so what you’ve said doesn’t make sense.

    We’ll agree to disagree.
     
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