Pre approvals

Will a rate rise affect my pre-approval amount?

Quick one today.

After a waterfall of rate rise notifications last night from over 30 banks (most starting next week May 15), I am sure you don’t need another reminder from me.

However one question from a client yesterday I think would be useful to repeat to all of our clients:

Question: If I have pre-approval in place and I purchase a home next week what interest rate will be used for assessing final approval? The new higher one or the old one?

Answer: It depends on the bank and the key date is May 15 for most.

For example for Westpac, ANZ and NAB will use the old rate for final approval as long as no material changes (note you will still pay the higher variable rate once the loan commences).

Macquarie and CBA will use the new higher rate from May 15.

If your ability to service your loan is line ball, this is very important.

Before signing a purchase contract, get in touch so we can double check it for you.

If you are thinking about a pre approval, you might need to get a wriggle on this week.

Call me 0403 397 060 or email [email protected]

Reggie

Get Your Financial Plan in Place

We’re in Brisbane, Jindabyne, Canberra and Sydney this Month

Want to discuss your financial needs? Lets catch up in person or via Zoom

That’s it for this week.

Keep showing up and keep cheering each other on — life is better when we support each other.

Reggie and the Thunderbolt Team