Eventus Financial Featured in Australian Broker: The Hidden Risks of Outdated Home Loan Pre-Approvals
As Featured in Australian Broker | Expert Commentary By Alex Veljancevski
Eventus Financial Founder and Director Alex Veljancevski has been featured in leading mortgage industry publication Australian Broker, warning Australian home buyers about the financial risks of relying on outdated home loan pre-approvals when purchasing property.
The article, titled Pre-Approval Trap: Buyers Bidding With Outdated Borrowing Power, explores how rising interest rates and changing lending conditions can reduce borrowing capacity, leaving buyers at risk of committing to property purchases they may no longer be able to finance.
Alex highlighted that mortgage pre-approvals are not unconditional guarantees of finance. Instead, they represent an assessment of a borrower's financial position at a particular point in time, based on their income, expenses, liabilities and prevailing interest rates.
With the Reserve Bank of Australia's interest rate increases impacting lender servicing assessments, buyers who secured pre-approval several months earlier may find their borrowing capacity has decreased, even if their personal financial circumstances remain unchanged.
Alex also warned of the heightened risks associated with purchasing property at auction, where contracts are generally unconditional and buyers may have limited options if their lender subsequently approves a lower loan amount than anticipated.
While most mortgage pre-approvals are generally valid for approximately 90 days, lending policies vary between financial institutions, and changes in interest rates can trigger reassessments.
Alex emphasised the importance of regularly reviewing borrowing capacity with a mortgage broker, particularly following RBA interest rate movements and before making an offer or bidding at auction.
The feature reinforces Eventus Financial's expertise in home loan pre-approvals, mortgage lending and helping Australian property buyers make informed financial decisions.