I've just started talking to banks about getting a home loan.
Ubank is one bank I've spoken to and was quite surprised at how little they would lend me. Not sure if this will be the case with other banks…
Can anyone with experience chime in?
UBank - Conservative with Servicability?
samplegetter on 29/09/2019 - 15:38
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how did you go with WBC?
All banks will implement a minimum of expense against applicant's annual income. Wondering if WBC's expense matrix is around the same for you?
I'm going to talk to other lenders. Maybe their conservative approach allows them to offer loans at lower rates.
Based on their calculations, it's as if I must have 30% of my income left over.
UBank has become conservative. A large part of that would be RBA/banking royal commission recommendations regarding how people broadly lie on living expenses. UBank may have tightened up things too tight. UBank will compare your credit card statements versus the spending you declare. If they don't match you'll also be rejected. Be prepared to justify every large transaction as they will ask.
Another thing I found is UBank doesn't want to see certain expenses on your credit card bills. Anything regarding business spending on your application results in an automatic rejection. They won't even consider it. When you have a UBank consultant call make sure you say 100% of the spending is for personal everyday use.
The commission was detoothed through Liberal/National Party interference, and had very little impact on the decisions being taken by the major banks. Credit has tightened up due to mortgage delinquencies being on the rise, property prices falling on a year-on-year basis and some pretty terrifying economic conditions forecasted. The larger banks are just protecting their loan books.
Broker here.
I'm obviously biased, but this situation is where you really should speak to broker.
In the space of 30 mins a good broker can asses your income / expenses and give you a breakdown your borrowing capacity with most lenders in the market.
We also understand lender policy niches - for example some lenders will use overtime or bonus income, others won't. This can have a significant impact on borrowing capacity.
UBank is extremely tight in my opinion. You'd have better luck with the Big 4 banks, generally, but you have to be willing to negotiate on the interest rate.
I'm going to WBC to see what they will offer me as a credit limit tomorrow.
I found UBANKS online application to be a pain and always rejecting me. It was like I had to put in 1800 a month in expenses because that was the minimum it would accept or what their algorithm said was about right.
Just For My Info what is your current situation in regards to getting a loan?