“Which bank?”

NAB and Westpac were able to tell me if I qualified on the spot. ANZ had to refer it to their central office and couldn’t give me an immediate answer (and I was not a borderline case either!).

Westpac are wary about lending in some country areas. Even for a place in a city of 30 000 they would only lend 70%. Whereas NAB would lend the full 80% I wanted at 6.06%.

I haven’t tried any of the smaller banks/loan providers.

Peter

I have used ANZ earlier on as they do 95% interest only loans and they allow you to capitalise the mortgage insurance. The problem with ANZ is they are extremly slow. 2 of my settlements went over deadline because of them being late getting docs out etc.

And they did 3 CRAA checks per property (one for pre approval, one when i found someting and one for their mortgage insurers to check). This resulted in 18 enquiries ofr 5 properties. I then applied with Westpac and they rejected me solely on my CRAA-until I explained and they approved me for 2 more.

Terryw
[email protected]

Hi there,

Terry, 2 of our IP’s went through ANZ…slow like snails! A very costly experience. Apparantly it’s even worse now. We get a special rate going through the ANZ, due to all the business we’ve given them, but on our last IP, because we wanted faster settlement, we opted to go with Bank Of Melbourne, 5.99% variable rate, with IO for the first 5 years.
It helps to have a competent broker aswell! Make sure your playing ball with the right team!
Cheers
Soosh []

There are no problems, only solutions

Before I go to any banks/financial institutions I normally go to Mortgage Choice because they compare and find the best deals for you. Once you know which banks/financial institutions is best for you then you go direct to that banks/financial institutions and negotiate for even better deals.

As I am a wealth packages member I have my own relationship manager with CBA. He is fast and approve on the phone

Chandara

$ $ $ $$ $ $ $
$ One problem solved! $
$ Next problem arrive! $
$ $ $ $$ $ $ $

Like Trueblue and Chandara, I also use CBA,If u have loans over 250k you quaulify for there wealth package wich gives you a 1/2 % Discount of there standard variable rate + no establishment fees for future loans + a 20k credit card.My branch can only approve up to 850k then they have to put it to head office Regards Andy.

ok, really, which bank gives the best rate for Interest Only Loans FIxed Rate with no monthly fees??
Anyone got any good recomendations?

Hi Vinh

You asked how i got 10 ip’s in one year.

well

i went back to study for 4yrs to get my Batchelor of Theology and at the end my net worth was down to $25,000. So i didn’t have much to play with. I was able to buy some very cheap properties with some money i borrowed from my mum. one property was in Clarendon Vale Tas which i got for 33K but the CIV on the rates notice said 55k so i financed it with the bank paid back mum and had the deposit to buy two more properties this time in Elizbeth SA for 21k each (which i have just put on the market for 82K each) i then had to borrow from mum again then finance at a rate above what i paid. Admittedly it was a lot easier to buy at under valuation back in 1997. i was lucky that my mum was able to lend me money on a short term loan basis, not everyone has that luxury. but i knew i was buying IP’s well below there worth. As Kiyosaki says “the profit is made when you buy not when you sell”. But the message to creating wealth is you nead other peoples money (OPM) to give you the start, if it wasn’t from my mother i would have found another business partner

there are still bargins out there they just take more effort to find them.

Regards
westan

Hi All
obviously a lot of differing opinions here.
I have used the ANZ exclusively for 14 years. When I started I only bought one property per year, This year I am up to 5 properties so far, In fact I went to ANZ today to buy 2 at Highgate Hill in Bris. My lending manager told me they will not need to place a mortgage over the properties as I have enough equity already so the loan was approved on the spot. I suppose it is a case of working with who you feel happiest with. I sold 2 properties last year and both of the new lenders settled late (one settlement got put back 5 times)neither was borrowing from ANZ so I suppose it is endemic.
Good luck.
Soames

Hi folks,
Similar to Tony29 I am a broker. I’ve been in the industry for 7 – 8 years, and if there is any advice I can give, it is that the lenders go through peaks and troughs in terms of service and turnaround times.

Right at this moment Mortgage Professional Austalia is conducting a survey of brokers on banks and other lenders.

In addition to operating my own office, with staff, I am a director of an aggregator group, which holds the head agreements with the lenders, and underneath which brokers write their business.

It’s frustrating to one week have great service for clients, to the following week knowing the lender has fallen in a heap and that you might have clients go over the settlement date.

If you can find either a broker or a lender who can honestly cut through the garbage, let you know the picture as it actually is at the time you are borrowing, then you will be in front in saving time and dollars.

Westan mentioned Homepath, and I can relate that one of the brokers writing through my office, has success with them for investment, but that it took a little time.

If I can assist anyone with lending I can be contacted at [email protected], and web site
http://www.mortgagexchange.com.au.

If anyone is interested in the results of the broker survey when it is completed, let me know and I will either email them to you or post the results.

Like everything else in investing, research and education is everything!