How Long Normally It Takes to Apply for Refinance?

Anth0ny on 24/07/2020 - 06:10

So 2 weeks ago im refinancing my home loan to ANZ 2.29% with 3K cashback through a broker.
Up until now, my broker keep saying its still in the process - they are still assessing it and it does normally take up to 2 months long.
He said that nowadays banks are prioritizing new first home buyer loan application and because of covid refinancing process may take longer and plus he also said since covid 19 the bank is not running at 100% capacity because they have to laid off some employees and everyone is working from home as well.
Is this really true?
Is it now taking this long just for refinancing?
The broker also said all banks are roughly the same so even if im applying with another bank it will still taking 2 months.

Financial

Related Stores

ANZ
ANZ

Comments

  • mt19 on 24/07/2020 - 06:50
    +1

    Finished re-financing with ANZ mid June, started the process end of April, 2 months seems about right.

  • SmiTTy on 24/07/2020 - 06:58

    I submitted mine for anz in March and still waiting.

    Id suggesting going with a difference lender

  • sweefu on 24/07/2020 - 08:52
    +1

    Your broker is spot on - ANZ is very slow currently.

    Expect a total time of 2-3 months.

    Other banks are much quicker, but you wont get the cashback.

  • DingoBilly on 24/07/2020 - 10:10

    ANZ is suuuuuper slow.

    I started application 10th of April, and we're now getting to the stage of settlement. About 4 months in total, with a massive lag at the start of about 2 months where ANZ was just not responding/sending anything back.

    Cashback seems decent though - not sure who you're doing it with though but might be worth asking about a broker cashback as well to sweeten the deal? We were offered 0.3% additional to the ANZ cashback for using the broker.

  • Cluster on 24/07/2020 - 10:23

    I did a refinance with UBank about two months ago and it took a month. Banks keep coming back again and again asking for more paperwork. What you submit at the beginning is only about half the paperwork and statements you eventually provide.

  • redfox1200 on 24/07/2020 - 10:57

    i started with ANZ about 2.5 weeks ago, existing bank documents are ready to go, just waiting on the ANZ legal documents now.

    • desparito on 24/07/2020 - 11:05

      I had also submitted my application by end of May and last i heard from my broker is that there is huge backlog at ANZ and probably application may be picked by 1st week of Aug. I am refinancing off NAB.

      Can you elaborate what you mean by this - just waiting on the ANZ legal documents now

      • redfox1200 on 24/07/2020 - 11:14

        just waiting on what ever docs they need to prepare for the settlment, i'm refinancing from ING, and they took about a week to get their settlement docs ready.

  • Mulga Bill on 24/07/2020 - 11:03

    I am a lender for a bank. Yes banks are running on lower staff (not sure if it will return to same levels post-Covid either) so assessing can take longer at the moment. Also many banks have a 3 week minimum processing time for am external refinance (they are in no hurry to lose a customer) plus they are also probably running short staffed so even once approved it will take another month for settlement.

    Delays with approval may be
    - It may take a week or 2 before the lender can start your application. with less people going into branches more are applying online (I am normally in branch but currently working form home helping the online team - who also assess broker applications).
    -We need to review all documents provided by the customer which can uncover more questions so there can be a lot of back and forth with documents causing delays.
    - If a full valuation is needed the valuers also have their own covid related delays.
    - if you have a loan that does not tick all of the boxes it may need to be escalated to a higher approving power. They may also be seeing an influx of applications (due to $10k tax withdrawals, loan payment deferrals, JobKeeper payments etc.)
    - due to Covid additional ongoing employment verification checks are needed and not all employers are keen to say if their business or staff will be affected by Covid in the long term (so may need to be escalated for approval).
    - the lending environment has changes massively since the royal commission and new Banking Code of Practice responsible lending guidelines plus now Covid has shaken it up again so policies are changing by the day sometimes.
    - sometimes customers take 2 weeks to provide requested documents and then expect it approved the next day
    - and of course there are also lazy lenders 8-}

  • pioneer17 on 26/07/2020 - 12:08

    My loan application was submitted end of May. Still haven't heard anything from bank nor broker.

    • Anth0ny on 27/07/2020 - 05:59

      who is the bank?
      i want to ask is it true that nowadays smaller bank process refinancing quicker than major big 4 bank?
      This is the rumor i heard as well.

      • pioneer17 on 27/07/2020 - 11:38

        it was with ANZ. Smaller banks might process faster as they get less no of applications compared to big 4.

  • mr-black on 29/07/2020 - 10:15

    Came across this thread after searching for why ours is taking so long….

    FWIW and FYI we submitted an application through a broker at the end of May (to get in time for the refinance cash bonus) and we are stil waiting. We were initially given a date of the 15th July for the file to be 'picked up' by ANZ, but till now there has been no progress.

    • pioneer17 on 09/08/2020 - 04:01

      True, it's annoying to be waiting for over 2 months with no update from bank. I'm also in same boat, cashback is the only attractive thing that is holding me from fixing loan with the existing banker. Did your application progress any further?

      • mr-black on 19/08/2020 - 06:48

        I'm still waiting…..

        Although, I do see a credit check from them on the 5th Aug so I guess there is hope it will be closed soon.

        • mr-black on 18/09/2020 - 13:53

          UPDATE: Approved today!

  • dmnw on 31/07/2020 - 22:48

    ANZ processes loan applications overseas in Bangalore. The lockdown has severely affected their turnaround times. This is also the case for Westpac and to a degree NAB.

    ANZ was so behind on applications their raised their fixed rate offer and reduced their cashback for new refinances.

  • GuyfromMelbourne on 18/09/2020 - 23:41

    ANZ normally is pretty good but covid and their 4k cashback campaign combined 2.19% fixed rate slammed them. The broker is telling the truth. And why wouldn't he/she, he is more eager than you to settle it asap. He only gets paid after your settlement.

Login or Join to leave a comment
Login Join