Well, several of our mortgages are cross-collaterised and when one property had gone up in value and therefore had over 20% equity, we decided to fill in the application to “change security” with the bank (so that the property would be it’s own security).
Well, they rejected it. Why? Becasue it’s not their policy! I argued that it had the equity to stand alone, that the other mortgages still had the equity in them to stand together with this one separated, our credit record is immaculate etc. But they stood frim because it’s not their policy!
[grrr]
Well, it’s not essential that we separate it, but I certainly would have liked to slowly have separated the securities if possible to give us choices in the future. (Which is obviously what the bnak does not want us to have – we are with Colonial).
Any ideas on fighting the bank over this!?!
No answers just take your buisness elswhere (Refinance).It will pay of in the long run.
Dom[wink]A couple of loans are fixed for another year, so can’t really move exisiting business without getting exit fees.
New business is a different story though, that can go elsewhere if we put in the 20% deposit rather than using our equity! Not ideal, but a possibility.
PK
Do you know exactly how much exit fees are ?And did you know you can incorporate them with the new lender? You might be very surprised.
As for reasons why it would definatly be better in the long run.
This worked for me , iwent to the bank and told them i was going to refinance with an other bank and they wanted to know why.
I explained that i did not want cross-collaterised my 4 investment properies wiyh my PPOr and guess what “Bingo” they obliged.
Cheers DomI agree, you need to be more forceful with the bank or just move elsewhere.
I don’t like your chances though. I have just refinanced a property away from Colonial as it was a nightmare from the beginning a year ago.
They love cross-collateralisation and I found them to be uncontactable to make any changes to the loan ie there is just a call centre no. to lodge a complaint on. Non-existent personal service basically.
Why not move one property at a time to slowly untangle the web?
Brendon
Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
http://www.acuteme.com.au
[email protected]Hi everyone,
Thanks for the advice. Yes, Colonail are not easy to contact, it’s all leave a message type of business and hopefully they call you back.
Bit hard to move one at a time as they are all tied up, whihc is exactly what they are after I guess. Perhaps ringing to ask exit fees (I haven’t done this yet, thanks for the idea) might help as perhpas it is time to move it all elsewhere.
Just to do so would mean more valuations, whihc means upsetting the tenants again as this was all just done for a new loan. Not sure I want to upset my tenants again.
I do agree that’s it’s time to move but I may need to wait a few months and allow the tenants a bit of piece first. Bu tI’ve definitely had enough of Colonial.
Does anyone know if Commonwealth Bank policies are the same? (As Commonwealth own Colonial I wonder whether Colonial have there own polices or whether they uses Commonwealth policies?)
PK
I have three loans with Colonial and have not heard of this policy. It may be wish to check with a few different people, as you tend to get different answers each time you talk to someone different.
I am sure you can just fill in a form, release of security, and pay a small fee and they will do a valuation and release it if the values come in ok. Maybe you could tell them you are planning to sell the property.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
I filled in the form (with another form allowing them to deduct the fee from our account), had the valuation done by their approved valuer, it came in OK (ie: house valued at $210,000, land is $166,000), ie: we own MORE than 20% equity now. However, their “Risk Assessor” declined it and the only reason we’ve got from them is “it’s not their policy”.
An intersting point you make that you tend to get different answers when you talk to different people. I find communication with this bank the biggest problem of all, we have 4, nearly 5 mortgages with them now and the last three have had some sort of problem, either a form they forgot to send out, or not getting the approval back on time because one department “forgot” to send the other department the valuation etc.
Basically, when the loan we are currently doing goes through I intend to write a compalint to there complaints dept or whatever they have and see if they’ll either change their mind or give more information if there is a problem. Failing that we will move banks when our fixed loans fall due next year.
Regards
PKPK
Writing to the complaints department does help get things moving. I have been speaking to ANZ complaints section about my other loans with them and they have been very helpful.
Also what about writing a letter to the bank asking for a pay out figure for all your loans. tell them you are moving banks because of xxx. Most banks, including CBA, now have a client retention unit whose purpose is to keep customers about to leave. They are emporwere to offer incentives to keep customers.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry …
should have tried the complains route myself ….Had 6 loand thru ANZ via a broker ……They refused to speak with me and said I should only deal through broker …..
Broker was hopeless as they did not know the ANZ policies and procedures…..
Result :—- Nobody would talk to the customer …
I walked ….so stuff the ANZ ……( this was the business banking section ) bloody hopeless ….
Thank goodness other banks do listen …am now very happy with Bendigo bank and over 20 mortgages …..
Regards
wes[biggrin]How long ago did you deal with ANZ? Generally when using a broker they have a department dealing with the client, its called Originator Services I believe. Not the best way of dealing with a bank but I was never told to deal with the firm that brokered the loan to start with.
I ended up dealing with a local Branch Manager who was extremely helpful when sorting out some minor changes to the loan I wanted done recently. I keep forgetting to write a positive letter to ANZ on the manner this chap handled what we wanted done.
Hi Wes
I also had 6 loans with ANZ, and think nearly everyone of them had problems, wrong documents arrriving, late settlments etc. And two of my properties did not have the titles transferred to myself at settlement – I only found out about this much later. Anyway, to cut a long story short, I have been reimbursed for extra legal fees and other expenses on most of my ANZ loans. They have very good products, but it is like dealing with the public service. (sorry to all public servants out there – I used to be one).
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
>>it is like dealing with the public service.<<
Hey Richmond, Terry is character assasinating one group of the population there. [biggrin]
I think that part ought to be deleted, what do you think ? [laughing]
Pisces
Hi again ….
Cold comfort to know I was not alone in bad dealings with ANZ …..We have a company , so dealing with the Business Banking centre was a real pain ……
ahh well ….VOTE with da FEET
have 2 other lenders who are “real” people now ….
seeya
Wes[biggrin][biggrin][biggrin]ps. Our personal dealings with the local ANZ are brilliant …….unfortunately they cannot help us with company borrowings……
I experienced a similar (potential) problem with CBA in their wanting to cross-collateralise and cross-securitise everything. We applied for a loan in my partner’s name (amount less than $220K) for a new investment property to be owned by a hybrid discretionary trust and CBA put in their loan schedule that the security to be given will be: our PPOR (value about $1m), an investment property in our joint name (value $500k), a guarantee by the trustee company, my personal guarantee (???) – all this for a loan of less than $220K!!! I blew my top but kept calm and wrote to the person whom I was dealing with that it was a bit of an overkill and told he that the only guarantee which we would give would be the security over the property itself – which will be provided by the trustee company. He said the cross-collateralisation and cross-securitisation are normal bank procedures (of course, they are! because banks will take as much security as they can from unsuspecting borrowers). I said that this would be a problem for us later on if we wanted to sell one of the properties. He said to un-secure a property would be very easy. All we needed to do was to write to them and they would take it off!!! Yeah, I thought … We were going to prepare to walk if CBA did not act fairly – as we can draw down from a LoC with them to go through with the settlement if they stuff us up, and go somewhere else for another loan. In the end, they came to their senses – after we refused to sign the loan documents until they got the security correctly listed. Just imagine if people who do not know how to read the loan docs, they will in for a lot of problems in later years. Years ago we did have a problem with Colonial – and we threatened to take business elsewhere, they thought we would not and we did. We went to CBA instead as then they were more obliging to our requirements than Colonial. All I can say is to stand up for your rights and do your homework before you take action.
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