Australia’s largest bank has hired hundreds to deal with a deluge of mortgage applications as real estate industry veterans say banks’ pre-approval delays mean buyers are missing out.
The Commonwealth Bank hired around 400 new employees and told AAP its employees were working thousands of hours to respond to loan applications.
“The exponential growth in mortgage application volumes has placed considerable pressure on our support teams and operations,” ABC said in a statement.
The bank says pre-approval times have been reduced to two days in the past three months, but some more complex applications are taking longer.
And it is not alone. ANZ, a member of the “Big Four,” says the increase in response times has been as true for itself as it has for most of the major lenders.
“ANZ continues to increase its processing capacity through a combination of actions, including increasing the number of qualified assessors to ensure strong overall coverage of assessment types and strengthening assessor skills to review agreements. complex in order to reduce the processing times of these requests, “he said on Saturday.
It also intends to advance its home loan automation program.
Meanwhile, two real estate industry veterans say pre-approval deadlines of more than two weeks are seeing buyers miss.
Jellis chief executive Craig Stonnington, Andy McCann, told AAP he believes banks are under-resourced to cope with the volume of potential buyers.
“You feel for the customers who are going to miss out on their dream home because the banks are dragging their heels,” he said.
He says the delays have led to the failure of financing-subject agreements and the inability of potential buyers to bid at auctions.
He says “subject to funding” offers would normally be processed in 3-7 days by lenders, but now that delay is considered unreasonable and sellers should allow up to two weeks.
“When customers are in needless pain, something has to change,” he said.
Earlier in April, the executives of the Big Four banks were asked by a House of Representatives economic committee about mortgage approval times, after the federal government delayed plans to drop loan laws. officials recommended by the Royal Banking Commission.
The chairman of the Association of Home Buyers’ Agents of Australia, Cate Bakos, said the AAP pre-approval delays are “painful” and agreed sales have plummeted at the last minute.
“It’s really hard for us, you can get hung up on a thread… it’s very stressful,” she said.
“We can put in a two or three week funding clause and we are always looking for extra days,” she said.
ANZ said on Saturday that if he hadn’t lived up to customer expectations, he apologized.
“We have processes in place to help escalate time-critical applications (primarily for purchase transactions) to avoid this scenario, so we would be happy to have a conversation with customers. or their broker.
“We encourage all clients to send in their inquiries as soon as possible so that we can help them with their finances as soon as possible.”
Australian Associated Press