We are waiting on the loan approval to buy a property but it is taking longer than we thought. The agent has said they will take the property off the market if we pay a 0.25% deposit but we want to know if the loan is not approved will we lose the deposit? Property price is $970,000 so it is a bit of money?
Sounds to me like the agent is referring to the cooling off rights under the Contract. If that is the case you’ll lose the .25% deposit if you don’t proceed under the Contract after 5 business days.
If you have a lawyer/conveyancer you should check with them before signing any contract and handing over any money to the agent.
All the best.
Ok So I am NOT a broker BUT all my clients are going through absolute grief trying to get a loan.
^ months bank statements, how often do you eat out. W saw on facebook you are having another baby.
It is truly a nightmare trying to get financed.
If you put 0.25% as a holding deposit (equates to $2,425.00) and exchange contracts; you normally get a 5 day cooling off period which can easily be extended to 10 days without too much negotiation. Make sure you negotiate a 10 day cooling off period before signing the contract.
If for some reason your loan isnt approved; or you decide you dont want to proceed with the property; you will lose the $2,425.00 if you rescind the contract WITHIN the cooling off period. You will forfeit the full 10% if you rescind after cooling off expires.
Not sure if you went with a Broker or direct to the bank. If it is the later and you are running into difficulty then please feel free to click the following link to schedule a 15 minute phone consultation to see if I can assist you:- https://mortgage-broker.appointlet.com/s/phoneconsult