Hi,
Recently we have been to the Suncorp/Metway bank to get approval for a loan, and were told that we could borrow (if we wanted to) up to $500 000 approx. That was very nice to know in case we wanted a couple of investments [biggrin] but only wanted to borrow about $180 000.
Since then, we found a better deal with the ANZ who approved our loan, but this time we specifically said we only wanted to borrow up to $180 000 with a 10% deposit.
There is now a second property that we are interested in. Went back to ANZ and asked if it would be possible to borrow more for another investment (ANZ loans up to 95% of the purchase price, plus we will have some cash to put towards the second place as well), and use any equity in the first property to assist the purchase.
They said that we would have to wait 6 months to get an appraisal done on our first property, before we were likely to be able to use any equity in it.[blink] Even if this was the case, going on what Suncorp told us, wouldn’t we be able to borrow more money without using equity in the first property, providing we had the deposit, or have we missed something as first time property investors?
Thanks,
Ian
Sorry for the long winded story
Hi Ian,
This should not be an issue, Providing you can service the loan and you have the deposit and funds to complete the deal on finance at 95% LVR.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Thanks Steven,
That’s what I thought. Maybe I should go back to ANZ and clarify the situation. Perhaps it was a breakdown of communication?
Ian
Good luck Ian, please let us know how you get on,
Cheers.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Get another lender or broker to help you.
That is ridiculous.
Byronent
Adelaide SAANZ may believe you asked to use the existing property. Their policy is correct with only one valuation every 6 months UNLESS you have renovated or done something else to increase property value.
ANZ has one of the highest serviceability rates in the market. What this means is they will lend you less compared to other lenders. Their products are so good because their risk is so low.
You can get your second loan from someone else as they do not all have to be with the same lender. There are quite a few good lenders out there that will help you if Suncorp said you could borrow 500k. Why go direct anyway??? You are wasting your time and not getting all the info! Use a broker!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdYes, we were intending to do some minor work on the property which would have added some value to the property. I think, as I said earlier, I may have to go back and clarify our situation.
I have however noticed a difference in the service between regional and city branches of banks when it comes to loans.
If worst comes to worst then I’ll just go back to Suncorp or use a broker as you sugggested.
Ian
Hi Ian the sticking point with ANZ could just be procedural as bank valuers are possibly under the pump in your area.Hve you asked ANZ for a re-appraisal.
IanHi 3 little pigs.
No we have not asked for a reappraisal yet as the house hasn’t settled (does this matter?). We have secured early access to the property to do minor work to it and it settles in early Feb. However, we believe that if we put it straight back on the market as is, we could make a profit.
I was asking ANZ about borrowing more in advance, so I knew where I stood when it came to acquiring finance. Maybe I jumped the gun a bit.
Thanks again,
Ian
Hi
ANZ have no limit on the number of or timing of valuations. I have just done one where the client has done a revaluation one day after settlement – with nothing done to the property – for a 30% increase.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Terry, but that is an off-the-plan purchase is it not?
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdYOU MEAN PEOPLE STILL GO TO THE BANK BRANCH?
GET A BROKER!
You wont know your self.
Jenny and Roy
Rob, No established property. One recent client settled in Nov, and a reval done and increase submitted in Dec (the same year) and this increase has just settled.
Even during my recent refresher training with ANZ we were told that a re-value could be ordered one day after settlement. In fact, I am doing one now where I have done a revalue before settlement (with a 33% increase).BTW, brokers can just order the val themselves without going through the ANZ network.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Originally posted by terryw:BTW, brokers can just order the val themselves without going through the ANZ network.
I am aware of this.
I have to ask though, why do you find a need to revalue property within a month of the initial valuation and how do you get a 30% increase in a month?
Why didn’t you just get the higher valuation done the first time instead of going through the hassle, and sometimes the cost, of increasing a loan?
When I grow up, I want to be a storm trooper!
Most banks will only lend on contract price or value, whatever is lower. My client got a bargin, we ordered a val and it came in a bit over contract price. He insisted it was worth more, I didn’t beleive him, but we ordered one anyway through a different valuer, with it coming in much higher.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
That is a whole different scenario to the one this thread is about. There is nothing special there. Almost all lenders will do this. Thy are just looking for “hurt” money!
When I grow up, I want to be a storm trooper!
I thought the original post was about accessing equity in their existing property, with ANZ, and ANZ would not do another valuation for 6 months.
And Rob, do need to quote me in every post, you could at least remove my signature. Are you aware of the basics of copyright law, and the Geneva Convention. (this part is a joke of course).[blink]
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
I am talking about ‘advantageous purchase’ policy does not apply here. You are giving people false hope.
And Terry, I quoted you ONCE for a reason.
When I grow up, I want to be a storm trooper!
O.K. Guys, now I’m confused.
Can I get a revaluation before 6 months to access any equity or not? We believe that our house would sell around the 200K mark if we put it straight back on the market.
Thanks,
Ian
The short answer is Yes you can.
Also as a side note I would always use a broker.
Rgds.
Lucifer_au
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