05 Sep Understanding Pre-Approval
Most Banks in Australia offer a pre-approval service or (API) approval in principal. They will ask you for everything they need like income expenses savings etc., but does this mean you will get finance when you purchase?
Unfortunately not.
Banks these days are mostly the same with only little niche’s which makes them all somewhat different. They all have different requirements past the normal.
For instance one bank might take casual income for 6 months and another may require 12 months minimum. Then there’s the rate issue. Rate is driven predominantly by LVR!
What’s LVR?
LVR means loan to value ratio. Which means the ratio of the amount of loan verses the amount of deposit available at settlement?
For example you want to purchase a house with a purchase price of $400,000 and you have a deposit of $40,000 the LVR would be 90%. This would take you into LMI territory. LMI is loan mortgage Insurance. We’ll go into this another time.
Just from this you can see it starts to get away from SIMPLE as the banks will tell you – and now it is becoming a bit of a mine field!
One bank will tell you what they will do for you, IF you fit their criteria. What they won’t tell you is what other banks and or none bank lenders will do for you.
At PMAA we will look at many banks and non bank lenders to see who will offer the most suitable product to suit your circumstances and your particular needs.
And unlike some others we are not owned by one of the big four!
We are totally independent.
Our mission is to retain you as a customer for life – not just your first purchase.
Once again if you would like a free no obligation consultation in the privacy of your own home please call us, contact us via our website or send an e-mail at enquiry@pmaarealestate.com.au.
(We also conduct video conferencing or internet meetings should you live in another State, or a distance from our base in Loganholme.)
Alternatively you could take the day off work and go to your local Bank branch!!
Until our next Blog.
Tony Meeds
Managing Director & Principle
PMAA Real Estate