Is it getting harder to get bank funding?

Mortgage loan

Posted 7 months ago by Craig Pope

Slowly but surely banks have been getting slightly stricter. They do want to see a bigger servicing buffer these days and tend to be a bit more pedantic around business and investor related applications.

For self-employed borrowers, we would suggest getting your year-end financials for 31 March 2017 completed as soon as possible. Normally banks wouldn't start asking for these until around September, but already getting these latest financials has been a prerequisite for some applicants.

Banks have also been a bit more pedantic on borrowers where their situation falls outside the square, such as adverse credit history, consolidating large amounts of debt, and length of time in business if self-employed.

Non-bank lenders are picking up some slack and it is still possible to get 80% stand-alone investment property funding.

Turn-around times can also be on the slow side at the moment. With a rush of people trying to get conditions ticked off to enable placing cash offers at tenders and auctions, this tends to slow the banks down assessing applications.

Our advice is to speak to your mortgage adviser and try to get your ducks in a row well in advance of any tender or auction.

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