With loan applications coming in thick and fast, many lenders are struggling to keep up with demand. In January, new loans were up by 52% compared with January 2021.* This means we are seeing long delays in home loan approvals from many banks, particularly the majors. In fact, a number of major lenders are not even looking at home loan applications for three or four weeks, let alone processing them. Some borrowers are having to wait two months for their approval.
On top of this, the property market is heating up in a big way. National home values increased by 2.1% in February, the largest increase in 17 years, with certain suburbs increasing by much more than that over the past month.^
This is a very difficult combination. Buyers who can’t get their loan approved fast enough simply can’t be competitive in this market and will miss out.
To make sure you’re not one of them:
1. make sure you have all the documentation you will require for your approval. For example, if you haven’t done your 2020 tax return and are self-employed, you should do this now as you won’t be able to borrow without it.
2. shop around – sometimes, it’s not all about the rate. Smaller lenders and non-bank lenders are tending to be more able to cope with the demand and currently have much faster turnaround times.
3. get a pre-approval in place with a lender who can move fast if needs be.
If you are in the market for a property, please give me a call asap. I can make sure you know your borrowing limit, have all the documentation you will need, and help you find a lender who can get you over the line on time so you can negotiate and bid with confidence.
Sources: *abs.gov.au, ^housing market property prices
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.