Australia’s largest bank employs hundreds of people to respond to the flood of mortgage applications. Real estate veterans say that delays in bank pre-approval mean that buyers are missing out.
Commonwealth Bank has hired about 400 new staff and told AAP that the workers are working overtime for thousands of hours to meet loan demands.
“The surge in mortgage applications has put a lot of pressure on our support team and operations,” the CBA said in a statement.
According to banks, the pre-approval period has been reduced to two days in the last three months, but some more complex applications may take even longer.
And it’s not alone. ANZ, a Fellow’s “Big Four” member, states that the increase in response time applies to itself as well as most major lenders.
“ANZ has increased the number of skilled assessors to provide strong coverage of all assessment types, skill up more assessors to review complex deals, reduce the time required for these applications, and more. We continue to increase processing power by combining actions, “said Saturday.
We also plan to advance the mortgage automation agenda.
Meanwhile, two real estate veterans say they’re seeing buyers miss out due to delays in pre-approval for more than two weeks.
Andy McCann, managing director of Jellis Craig Stonenington, told AAP that banks believe they lack the resources to deal with large numbers of buyers.
“You feel a customer trying to miss his dream home because the bank is dragging his heels,” he said.
He states that the delay caused the loaned transaction to fail, preventing potential buyers from bidding on the auction.
He says “loanable” offers are usually processed by lenders in 3-7 days, but that time frame is considered unreasonable and vendors need to expect up to 2 weeks. ..
“When a customer is suffering unnecessarily, something needs to change,” he said.
At the beginning of April, executives of the four big banks were grilled for mortgage approval times by the House Economic Commission after the federal government postponed plans to abolish the responsible lending law recommended by the Royal Commission. I did.
Kate Bacos, chairman of the Australian Real Estate Buyers Association, said the delay in AAP pre-approval was “painful” and the agreed sales fell at the last minute.
“It’s really hard for us, you can hang on a thread … it’s very stressful,” she said.
“We can have a two- or three-week financial clause, but we’re still scrambling for a few more days,” she said.
ANZ apologized on Saturday, saying it did not meet customer expectations.
“To avoid this scenario, we welcome conversations with you or your broker as we have a process in place to escalate time-critical applications (mainly purchase transactions).
“We recommend that all customers get the application as soon as possible so that they can support their finances as soon as possible.”