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?

Hi Susan,

deposits are generally NOT refundable, but best ask the agent to confirm (in writing) to cover your backside.

cheers
BC

Susan

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.

AJ

Hi Susan

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

Regards

Sam