I say this because recently a friend and I tried to borrow about $195k between us to purchase a property and were knocked back for finance. In itself it is not unusual but given that my friend and I earn about $170k between us in salaried positions and the property was for an investment and returning a higher rate of return than the interest rates the banks were charging makes it crazy.
I think the banks have gone from one extreme to the other and will no longer take any risk at all. ......................................................
I'm a FHB and the hoops I've had to jump through for my pre-approved loan are unbelievable. I have a good work history (mainly government jobs), proven savings history, I've paid out loans in the passed (2 x car), I have a 20% deposit, good credit history, and I do not own a credit card. I have a government job, and earn above average wage.
Out of the 3 institutions my broker has recommended for my situation, 2 verbally turned me away, before I even filled in an application. I have an application in for the other one, should find out next week. The reason given for being turned down so far is that I have not been in my current job for more than 12 months. I had a letter from my boss stating I'm not on probation, my position is very sought after, and there is a shortage of people with the skill set required to do my job.
