[what do you do when you have equity but the bank says you no longer have’serviceability’.Ihave 4 properties all cross collateralised theres plenty of equity to borrow more but the banks just keep saying no.
Any ideas anyoneGlenn/size=4]
never never never sell
look at my reply in -no more finance
you’re with CBA arent you
get a good mortgage broker
refinance, revalue another bankcheck Evelyn Crawford in Melton – she’s good but now absolutely refuses to deal with CBA after my case, so if you’re with CBA you can try otherwise
ring 97473211Hi Glenn,
This is the downside to having all your loans with the one lender, Xcoll,I would suggest you talk to a Mortgage Broker and see if some of the security can be released,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Glen,
the bank says you no longer have’serviceability’.
This generally means your LVR may well be fine but you don’t have sufficient Cashflow (income) to service (=pay for) any more lending. Unless you can come up with more income you can’t go any further with that lender!
Maybe a new Mortgagebroker can help as suggested above, but it’s up to you to prove it to the banks, no matter where you go. Do the LVR’s and other funcky calculations and show them, my banker wanted to lend me more money than I can poke a stick at. All I have to do now is find the houses and I’ll be set.
CheersC@34
What do you do – find a lender that wants your business. Or find a broker who can do it for you. Both cost the same.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
correct!!!! succinctly put
Ok so you have a bank, you need 6 or 7 with other finance options. Have you used low doc loans? Try whatever works through a broker, and feel sorry for your old, crinkly, 1960’s mindset old bank.When they loose enough customers this way they may just wake up in time.
DD
If you have equity or deposits, then you can usually get finance somehow –
I would use a broker and try for standard loans first, then try for low docs, then no docs and then even private lenders as a last resort.
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
When the bank manager told me the serviceability was tight I asked to see his claculations. I found he had not correctly put all my income into the nifty little cashflow spreadsheet. He also made a snide remark about my income compared to his own. A touch of tall poppy syndrome perhaps?
Embarrassed as he was he still rejected my loan application. However, I then had the correct information which was suitable at another bank.
This was all some time ago and incidentally, with a few bank mergers and acquisitions I ended up a customer back at the same bank, just in time to celebrate the guys DCM (don’t come Monday)
The lending institution you are with may have done their numbers and decided they’re over-exposed to lending in the sector you’re in, or even just residential property in general to that matter. Unfortunately the banks have to diversify their portfolio as well to minimize their risk – they just don’t admit it.
Regards
Jeffthanks to all who have taken time to help me.to fjficm i read your article i have a carbon copy problem.cba have a good product but they cut your legs off.
regards
glenn[biggrin]never never never sell
CBA / Colonial are not that bad if you know how to deal with them. They are one of the only lenders who charge a single annual fee of only $300 for multiple property investors which provides you with your home or investment loan, an offset account (which has only recently become half decent to use) and a credit card. All this with no other fees or charges for the offset account, the credit card or the loan. The annual fee gets you huge discounts on their standard variable rate so your loan should be between 6.37% and 6.57% depending on the total borrowings.
Above this, they provide unlimited accounts. This means you can have 100 loans with them for no extra charge – no valuation fee, no application fee for new loans, etc… They may get a little nervous though when their exposure gets in the millions but if you are well diversified by location and show them you are professional, you should have no problem.
The best of all, you do NOT need to cross collateralise any of the properties and you can have a seperate statement for each portion of your loans (still no charges).
BUT WAIT, THAT’S NOT ALL!!!
They also have a mandate to be in the top three regarding their variable and fixed rates so you can usually get one of the best deals available in the market.
BUT WAIT, THERE’S STILL MORE!!!!
They also have the most flexible servicing calculations of the majors. They allow deductibility of investment loans and are very flexible with security property types (although St George is more flexible with security types).
I think if someone is having major problems with CBA / Colonial, they should look at their broker because of poor structuring or poor submission quality. They just do what they are instructed to do. Their services are in house and they are happy to escalate things to get them to settlement so I do not see the problem.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
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