Clayton's Finance Approval (The Approval You Have When You Don't Have Approval)

by Tim O’Dwyer M.A., LL.B Queensland Solicitor & Consumer Advocate watchdog@argonautlegal.com.au

The fax came through late one afternoon from the mortgage broker for a residential property buyer on whose behalf I was acting.

“Dear Tim,” it familiarly began, “I am pleased to advise that finance has been approved, to assist with the purchase of the above-mentioned property.” The fax, which was on the broking company’s letterhead, continued that the broker (THE LOAN MARKET MULTIBANK LENDING CENTRE) was pleased to be involved in the process of securing finance for my client, and gave a contact number if I had any further questions regarding this approval.

It was signed off sincerely by a “Mortgage Consultant”.

Accompanying this fax was a copy of a letter addressed to the broker from the lending bank, BankWest (Bank of Western Australia Ltd.). This finance approval letter began: “We wish to confirm the loan application received at BankWest Consumer Sanctioning has been Unconditionally Approved.”

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