Bank Home Loan Approval with Two Banks

lilyesp on 02/08/2022 - 19:29
Last edited 02/08/2022 - 19:54

Hi everyone
Was hoping to get some advice
My nephew has pre-approval for home loan already with cba for a home loan however he saw the recent Citibank Cashback offer.

Although he already conditional approval with a bank..would reapplying for approval with Citibank cause a big dent in credit report or if applying for a new one mean that the approval amount would be less or when it comes to getting unconditional approval with either cba or Citibank will they do a recheck of credit and land into problems?

I guess he's just looking at the 3k Cashback . Should he ask cba to match it..prob unlikely though hmm

Thanks🙂
Lily

Financial Loan

Comments

  • avoidfullprice on 02/08/2022 - 19:36

    Well the real concern is when he goes through the mortgage they will recheck his borrowing capacity, and that can affect his mortgage amount. Conditional approval guarantees nothing. L

    Edit: misread you saying your nephew applying for a credit card with citibank. Well it depends if both banks check on the same credit agency. From memory, not that much of a hit compare to applying for a credit card

    • lilyesp on 02/08/2022 - 19:55

      Yeh he doesn't mind too much Abt the credit hit and he is applying for less than his maximum

  • Mulga Bill on 03/08/2022 - 09:26
    +3

    Tell CBA about the cash back and that they are applying with Citibank to see if CBA will price match. Applying for 2 banks at once is not a big issue (in itself) unless he has had a lot of other credit inquiries too, weakening his credit score.

  • Kinko82 on 06/08/2022 - 19:17

    Generally not going to be an issue unless you already have a very low credit score.

    Applying with two different banks is very common, we often have clients preapproved at one bank and then apply to take out their actual loan at another bank due to better rates, cash back, promotional offers etc.

    He just needs to advise his broker or Citibank lender that he has applied for the cba preapproval as it will show up on his credit report when Citibank does their credit check when his application is submitted.

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