St George Bank Home Loan Pre-Approval Conditions

Sshanaz on 03/06/2019 - 12:49
Last edited 03/06/2019 - 13:00 by 1 other user

I applied for a home loan with St George and they came back with following conditions in pre-approval letter. Are they standard conditions?

In relation to point 3, my deposit is less than 20% so LMI would apply. Anyone knows who St George Bank uses for LMI insurance and would there be a separate credit check for LMI at the time of unconditional approval?

In relation to point 5, I already provided them information/documents for previous enquiries during pre-approval process. Would they be conducting fresh credit check at the time of unconditional approval?

1) Satisfactory validation of your financial circumstances that you have told us, and that they have not changed.
2) Each applicant's ability to provide the Bank with further information, if necessary.
3) Lender’s Mortgage Insurance approval, if required.
4) Satisfactory valuation by us/our agent of any proposed security property(s).
5) Our satisfactory clarification of your credit history, including information provided on a credit bureau report we had obtained.
6) Confirmation that your application meets your requirements and objectives.

Many thanks in advance.

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  Typical16-bitEnjoyer on 03/06/2019 - 13:05

  +1

  What's your actual question or concern that you'd like answered? All financial institutions will have clauses such as these to make it easy for them to reneg on the offer. They will not remove any of these clauses no matter how much you insist.

  A pre-approval is essentially a "Yes, we had a quick look and we MIGHT lend you money".

  Have you found a property to buy yet? They won't really do anything until they have a copy of the contract and disclosure statement.

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  mortgagebroker on 03/06/2019 - 13:36

  +1

  LMI will require another credit check.

  This is a automatic pre-approval saying if you meet our policy you will be approved.

  Try a lender that does a fully assessed pre-approval.

  Find a mortgage broker that can tell you what your concerns are when applying.

  • 

    Sshanaz on 03/06/2019 - 14:41

    I heard St George uses Westpac as Lending Mortgage insurer. Is it true? QBE messed up my loan unconditional approval last time so don't want any hassle if St George uses them.

    All document were reviewed and they even questioned previous credit card enquiries and expenses on my saving account. Doesn't it mean they have already fully assessed my finances?

    • 

      mortgagebroker on 03/06/2019 - 16:42

      yes, they use Westpac.

      If they have the above conditions then its not fully assessed.

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  GG57 on 03/06/2019 - 13:37

  Yep, pretty standard I think.
  As zeggie has said, all lenders will impose these conditions (or very similar). Maybe not so that they can necessarily reneg, but so as to protect all parties from misinterpreting what the outcome, from an informal application and review, actually is.

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  AssociatedKinko82 @ St.George Bank on 16/06/2019 - 18:47

  These questions seem like they are best answered by whoever arranged your pre-approval. Whether the lender from St George or a mortgage broker.
  They would know your situation the best and they should anticipate what's ahead based on your particular situation.