Hi, this is my first post.
I have a question about Cross Collateralising.
I am in the process of purchasing our second Investment Property. We have a existing loan with a bank – one of the big banks.
We have been looking around at loan products, but our existing lender has said that they will beat any other mortgage we are looking at and and will be really flexible with our requirements.
BACKGROUND
This bank manager that we have spoken to has an ongoing relationship with my partners father, who is a very successfull business owner. My wifes father also says that this bank manager is very close to him (obviosly because my father-in-law has some financial clout). As a result, he has been VERY helpful – as opposed to our old mortgage manager (with the same bank) who could not do much for us.Our primary concern is cross collateralisation. We want to continue purchasing investment properties, and dont want to get stuck because we have one big loan with a single bank.
Is there a way that we can set up this loan with the same bank so that it does not affect our ability to refinance in the future.
thankyou
If your bank is one that starts with “N”, then they seem to have a policy of trying to make every customer’s loan cross col with other loans. A former manager there told me this is policy, it helps the bank keep clients by making it hard for them to leave.
You can still have loans with the one bank and not have them crossed. You just have to emphasis this at the time of application and check the mortgage documents carefully. And allow time to have everything redone if they stuff it up the first time.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.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
Yes, it starts with an N and consists of 3 initials.
Would it still be a disadvantage to have 2 separate loans with these guys? Dosnt that put them in a position of too much power?
I mean, there is no reason why I cant get a loan from a separate lender, its just that these guys are talking about beating any offer on our terms.
We deal with the wholesale side of that lender “N” and yes their policy is to cross c and they can stand fairly firm on this. However push comes to shove and they will relent to get the deal. As Terry mentioned make sure it is organised at the beginning and would suggest in writing.
I had a deal that had been agreed to in the past and the manager went on holidays, credit knew nothing of our prior arrangement took some considerable pressure however they relented as the alternative was I was going to take the 3 property deal else where.
Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service we come to you!Must admit with the N Bank we never have a problem however having said that many clients have said as Terry mentioned it is policy to ensure that the clients cannot leave them.
As they don’t pay brokers trail commission many use other options but it is like anything in this world there is good and bad. My experience from our own Branch Manager where we place out clients deals has always been good.
He knows if he tries to X Collateralise the clients then we take the business elsewhere.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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