Why Do Banks Take So Long At Christmas To Approve Loans?
Some people including real estate agents seem disturbed when we tell our clients this time of the year to seek a longer than normal finance clause on any proposed property purchase. Why is this?
Basically the banks get smashed with applications leading into December. This time of the year sees more and more people relocating interstate for work and/or moving houses to be closer to their kids school for the start of next year. And then there are the people who leave it to the last month of the year to look at their home loan and perhaps refinance to get access to some extra cash for Christmas or holidays. All of these things make for a perfect storm in terms of extra work and pressure on timelines for the banks to get things approved and loan documents out and back.
All the banks have now sent out emails to the market to advise of their cut-off dates for processing applications to be able to settle before the 24th December 2015.
So if you are looking to change, improve or get hold of some dollars before the fat-man turns up – you need to move and have your application in to the bank for formal approval to be processed by Friday 11th December 2015.
And if you are buying – remember that most conveyancing offices close down between Christmas and New Year making it difficult in my experience to make settlement a smooth process. We suggest where possible you seek a settlement date first week in January to be safe and enjoy the festive season stress-free.
Happy to find lenders who could move faster if urgent. Some of the smaller players are still able to move better than the majors who seem to be busier and less flexible with their timelines.