Hi
Had a conversation with my personal banker at the NAB.
What was said to me was basically this:
Your PPOR and your IP are xcollat and we will not uncross them.
The value of the total debt has to be covered?
We will not do a re-valuation unless you pay for it.
If you buy another property we will only consider xcollat with your other 2 properties. No stand alone.
Gave me all the reasons why it is better to keep everything xcollat.
My borrowing capacity was low in comparison to other institutions. So i guess there formulas are different.
Said if at all i was too be considered i would have to give a bloody good reason why i would want to uncross.
They know i have some break costs if i go elsewhere and with the stamp duty it is not worth it. But hey i need some fexibility.
I am bloody frustrated with this.
any comments please[angry2]
regards
alfHi
Check out “The real cost of refiancing” in this thread.. I am confused?
I am told that i will incurr
discharge costs
mortgage stamp duty transfer costs
etccheers
alfalf, NAB will cross collateralise your cat if they can – its their policy. its your choice to stay – you haven’t said why xcoll is a bad thing for you, plenty of xcoll properties out there that have no problems what so ever – whats the real problem?
cheers
brahms
If you don’t ask, the answer is no!!
NAB are one of the “greediest” banks when it comes to holding enough security to cover their backsides. They are also incredibly inflexible on this.
Your only option is to speak to someone else at the bank if you’ve drawn a blank with your own personal lender.
The problem with cross collateralising, brahms, is that if you want to sell off one property, you usually then have to pay more fees to get your loan redone, and if their new valuations don’t stack up to cover the properties you still hold, you can really be in trouble. It gives them a huge amount of control over your portfolio.
It could also be as simple as – what happens if when you took out the loans you were employed, and now you’re self employed? What if NAB decides your risk profile has changed and doesn’t want to continue to lend against the houses they hold once you sell off one?
It’s not all bad, but it can be avoided.
By the way, I have friends (one of whom works for NAB) who hold loans through them, and they’re all stand alone. Go figure.Keep smiling
Felicity
Just out of interest, Alf, what did he say the benefits of cross collateralising your loans would be? I assumed he meant it would be beneifical to you (and not the bank).
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
NAB are fine with all structure and re-valuations as long as you push and speak with the right people.
If anything I find them more flexible.
Cheers
Stu
I find the NAB terrific – in fact they work the closest with the broker of any of the majors.
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.
While brokers seem to get a good deal with the NAB, I know many people who have hd nothing but problems with them. I agree with FW – they are the greediest bank of the big 5.
I don’t deal with them at all (nor do I borrow from them) – their products seem pretty standard and their customer service sucks dramatically. I’ve yet to hear of long term story which involves good experinces and the NAB (from a customer perspective).
Rgds.
Lucifer_auFW your post
The problem with cross collateralising, brahms, is that if you want to sell off one property, you usually then have to pay more fees to get your loan redone, …
quite true, an alternative way to view this would be that the initial loan was effected at a discount as opposed to setting up two separate loans (LOC against existing property to effect 20% plus costs and 80% inv loan) to facilitate the same purchase (cake and eat it too!!!)
imho my clients complain of a serious hot and cold relationship with NAB.
Lucifer, couldn’t agree more, its a bad day when i can’t better a NAB deal.
again, Alf, why or what exactly is your grief with x coll? what is the problem?
cheers
brahms
If you don’t ask, the answer is no!!
There is only one reason I know of why most brokers wont use the NAB – regardless of what they tell their client. Everyone in the industry knows what I am talking about.
Find a broker who uses them actively and you found someone who is truly looking after the client first.
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.
Simon
Nah you can’t mean that Broker wouldn’t put a client into a deal with the NAB becos of “you now what”
Aren’t we all supposed to work for nothing these days.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Of course I am not saying I use them exclusively – but I have done deals using them that other brokers couldn’t because they wont even consider them.
I use them a lot because they will work closely with what I want to achieve and also will make things fit to get the deal through. They are also fantastic when time is short.
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.
brokering is not always about what is cheapest as you know, most brokers want their clients to be satisfied with the ‘overall’ product – Simon, unfortunately the experience described in the initial post is reflective of NAB customers i have worked with – i’m simply sharing experiences which i think is conducive to this forum, unless of course you have a mortgage on this…(pardon the pun)
i’ll restate and add to my post, ‘its a bad day when i can’t better a NAB deal based on product, service or cost to my client’.
cheers
brahms
If you don’t ask, the answer is no!!
NAB certainly isn’t the cheapest. Easy to better them on a vanilla deal. There are times when they are fantastic though.
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.
true
Thanks for your input
so what the brokers are saying is
We are more likely to get it moulded how you like through us. Would that be accurate.
Why wont they allow me to uncross even though i am going to bring my LVR on th IP to 80%. This puzzles me as they would lend on 80% LVR on a single property?
Any of the brokers here feel they have enough pull with the NAB to get my PPOR and IP uncrossed, both properties re valued.
What i am aiming to do is this.
Valuation on PPOR i estimate LVR to be about 58%
Valuation on IP i estimate to be about 87%I want to get the IP LVR down to 80% with some of the equity from PPOR With LOC.
Then also have a offset account for PPOR loan.
Get as much borrowings as possible tp set up ready for any opps.
Other lenders seem to offer more in this regard.The other alternative is wear the costs and go to another lender with hgher borrowing threshold.
cheers
alfalf, are you disadvantaged by being x collateralised?
Hi Brahms
Good question no i dont think i am apart from what more seasoned investors have indicated that one should have all properties stand alone for a myriad of reasons.
NAB kept saying to me the total vaue of the debt must be covered
Terry
NAB asked me if i wanted to increase borrowings and i said yes so they said well its much better to have your pproperties crossed as the value of both will give you greater borrowing power.I indicated that i had concerns with the xcollat, that in the tragic event things went of the rails they would sell my house if they chose to.Rather than the asset which has the mortgage if stand alone. There response was well we wouldnt sell it but tell you to put it on the market.
In any event if we didnt get enough to cover our debt we would be after your house anyway.
So i am not sure what to do how to tackle this.
I want to re-do my loans.
they wont do a revaluation unless i pay for it.If i buy another IP they will value the whole 3 peoperties and x collat the next IP which i dont want that.
They have always been ok with me but have had a high turnover of personal bankers and this one i dont like. You know the young upstart type that you are just a pleb. Thats how the PB comes across i havent met this new one yet.
I asked a simple question what is my borrowing power. Response you will have to make an application if you want me to work that out.
Sorry for rambling on but boy i feel like buying a machine gun….lol just kidding
regards
alfAlf,
The prob with the NAB is that if you are an existing customer with a personal banker then our contacts wont help – we deal with the new biz section – and they wont touch existing customers.
I would call your PB and then go over his head – tell his boss you will be refinancing with Westpac unless they fix it to your satisfaction. I would suggest that you be prepared to refinance it if you need to.
Keep ging higher until you find someone able to help. Often the PB’s aren’t the sharpest employees of the bank.
All the best mate,
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.
Hi guys, a couple of things;
– I haven’t dealt with the NAB but on their past few “bad patches” I’m a bit unsure.
Alf, I am just restructuring from an xcoll with our home and IP. Our home is a line of credit and it has 4 offset A/C’s; 1 or 2 for transactions, one for savings, and the other will be our family trust which we invest through and all our rent/dividends are paid into.
From there we pay all our IP & Inv loans/expenses but while it sits in our A/C it also offsets our home loan. So you get 6 or 7% instead or 3 or 4%.Matt[medieval]
Matt
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