All Topics / Finance / NAB keep tightening

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  • Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi all

    I was advised by my PB that Inner city Townhouses more than three in a group now need 70%LVR.

    Irrespective if residential tenancy.

    Not happy Jan.

    Anyone else aware of this.

    regards
    alf

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627

    I hate to say this but NAB is probably The worst of the big 4.
    Their customer service stinks and so do their products.
    There is nothing which would make me recommend them.

    I would move banks. There are much better ones (St George and ANZ are pretty good actually).

    Rgds.
    Lucifer_au

    Profile photo of roborobo
    Member
    @robo
    Join Date: 2003
    Post Count: 155

    I would love to say this, I have 3 loans with NAB
    and have never had any problems. Last loan was aproved in 24 hrs 315k without a valuation. I deal with their Business Banking Center. You can even ring up and speak to the manager, I guess the difference is I don’t have to deal through a Branch.
    Robo

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    NAB are not that bad. They have some strange policies but most of them are fine. Their service (in my expereince) is fantastic. They are a very good lender.

    Many brokers may not want to use them becuase they are one of the only lenders that don’t pay a trail commission.

    By the Alf, every so often to post a complaint about NAB but yet you still stay with them????

    Cheers

    Stu

    Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi all

    Thanks for your replies. I have found that i have been given mixed treatment at times good other times not so good.

    Overall some of the PB’s have said we don’t necessarily agree with this or that policy.

    As far as enquiring and setting up loans etc NAB has been ok.

    Yes i have posted at times being critical of the NAB.

    The reason i stay with them is because at this point it is too expensive to break away from them because of fixed rates and other costs.

    So the Positives
    Quick responses
    Organising paperwork
    Quick approvals

    Negatives
    Policy changes become frustrating
    Will not allow uncrossing of securities
    If any more IPs bought via NAB they have to be crossed with current securities.
    Only reduced interest rate if i pay a application fee
    Limited lending because have interest only loans
    Borrowing capacity low
    etc

    So i have found them limiting rather than accomodating.

    Once my fixed rates are done unless they change im out of there.

    regards
    alf

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    alf,

    Innercity apartments at 70% LVR has been happening for a while- in general, across the board, to my knowledge. I don’t see it as a big deal. Keeps the old LVR down :o)

    I pasted an article with all the Banks LVR and lending policies on here a while ago. I’ll hunt and see if I can find it.

    kay henry

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    OK, here’s the article (or a very similar one) that I was referring to. It’s written in July 2003- possibly dated? But I doubt they have expanded their lending policies since then:

    http://moneymanager.smh.com.au/articles/2003/07/16/1058035041642.html

    Not a bad read t see the relative lending policies.

    kay henry

    Profile photo of stargazerstargazer
    Participant
    @stargazer
    Join Date: 2002
    Post Count: 344

    Hi Kay

    Thanks for that i am quite aware of the inner city apartment hotel motel small studio types concerns by the banks. Some LVR’s as low as 50% as was indicated in that article.

    I guess where i am a bit annoyed is that the NAB PB indicated that i would remain at 80% LVR because my property can be used as private residential accomodation as it is a 3 bedroom townhouse. The only warning i was given was that because i had a lease with a short term accomodation company that it would be deemed as a serviced accomodation. The LVR would be looked at in this case.

    So muggins here, when the leased finished didn’t renew as a serviced arrangement but went to private residential/employing a PM etc.

    When valuations cmae up for refinance part of a loan on the IP i was told that the 70% LVR applied.

    So instead of have $x equity i ended up with $y which obviously are much less. So it has stalled me at this point.

    But i fully understand it in terms of the smaller hotel type stuff.

    Stuart
    My PB says it is NAB policy that anymore tahtn a group of three townhouses inner city are now shaved to 70%. Have you found this, is it a across the board policy or is it a case by case basis.

    If i wanted to say state my case who would i go to. The PB says ask me and i will see what they say. Worthwhile trying to go higher you think?

    Cheers all
    alf

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Hi Alf

    Yes, I am aware of this policy.

    I would argue that if they have other cross securitised non-inner city properties then this minimises their risk and this shading shouldn’t apply.

    Cheers

    Stu

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    In the negatives for NAB I would also add – if you’re using a company/trust structure, they love taking out a mortgage debenture.

    Keep smiling
    Felicity 8-)

    Profile photo of FFCommFFComm
    Member
    @ffcomm
    Join Date: 2004
    Post Count: 627

    I’m not a mortgage broker, but as I said before I cannot recommend them for anything.

    1. Loan Products are substandard:
    ~Will not allow uncrossing of securities
    ~If any more IPs bought via NAB they have to be crossed with current securities.
    ~Only reduced interest rate if i pay a application fee
    ~Limited lending because have interest only loans
    ~Trusts req. mortgage debentures

    2. Banking
    ~ I’ve never had anything but grief with staff.
    ~ To bank a cash cheque I was told the fee was $5- unless I had an account with them (opened up a student account, deposited the cheque and closed it again – waisting everyones time – but hay them the rules).
    ~ High fees (except for one account).
    ~ They are the number 1 bank for being ‘Non Responders’.

    3. Service
    ~ Well they do have internet and phone banking…
    ~ And are fast (based on others experience).

    But overall – I cannot recommend them to anyone.

    Except perhaps to large business, but then their forex desk was down for a long time (after the forex debacle).

    Rgds.
    Lucifer_au

    Profile photo of DDDD
    Member
    @dd
    Join Date: 2004
    Post Count: 508

    Nab after that trading scandal last year where they lost millions, tightened their lending. Homeside finance, the renamed Bank of NZ they own, had a new product last year which was an 80%lvr low doc loan. I used this to purchase two townhouses putting up a third security as deposits. Loan got approved then a month later got a letter from them stating that due to “unforseen circumstances” the low doc loans were all being deemed to be normal loans from then on.(they cancelled lowdocs) and if i wanted to do anything on them I would have to apply under normal loan conditions which may risk the status of this existing loan.

    So I am not happy with the NAB/homeside and always have heard disturbing things regarding service and helpfulness about them in the past. So this was my first and last foray into dealing with them as flexibility is the main reason I get loans for property.

    Lodocs are great and I now use one lender whos standard loan is 76%lvr IO lodoc loans. Sure this is less borrowing but as Kay says, a lower LVR is good.

    Good luck with the banks, they all have their foibles.

    DD

    Don’t sweat the small stuff,and it’s all small stuff!!

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