Hi hope someone can assist me
The bank said they will happily give me a loan. I have been told because of my age that they will not lend to me on a 25 or 30 year term.As I have sufficient resources to cover the loan I can’t see the problem.
How can I persuade the Bank to give me the terms that I want because the shorter term of 20 years increases my monthly payts, and I need them to be lower.
Any ideas??
Jul[cap]
JULES1
Email MeWhich bank?
Maybe you have to change banks?
Terryw
Discover Home Loans
Mortgage Broker
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
Are you using a broker? There are lots of other loan products out there!
Bob
Use another lender.
Simon Macks
Finance Broker
[email protected]
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.
all of the above
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Hi Julies1,
You have 2 options, seek a more accommodating lending institution, or take up the interest only repayment term option and make additional repayments whenever you like, most lenders have this option with I.O terms, check this with your Broker or Bank, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Originally posted by JULES1:…How can I persuade the Bank to give me the terms that I want because the shorter term of 20 years increases my monthly payts, and I need them to be lower. Any ideas?? Jul[cap]
Hi Jul
I assume you’re in a strong position with the bank, as they’re happy to lend you money. But they won’t do what you want, so at the very least you have to threaten to leave them.
However, the only way you can do this is to get WRITTEN QUOTES from at least one other competitor. Banks scoff at verbal threats, and only respond when you put one of their competitor’s letterheads on the table, making you a:
~ Written offer…
~ …of a Specific Product
~ …at Specific Terms (interest rate,
term of loan etc)Any of the above Brokers can help you arrange this, or you can do it yourself. Personally, my substantial portfolio has been built with the assistance of +CF savvy broker, and if you don’t know one of these, maybe it’s time you introduced yourself. It has to do with:
a) Educating yourself into a higher level of negotiating skills with banks
b) Valuing the skills these people have, and being comfortable having the banks pay them a modest commission for rewriting your business
c) Extending your NETWORK /building your +CF team.That’s my personal opinion and experience, but if you prefer to do it yourself, here’s how:
1. Ring your current bank manager, and ask him to fax or mail you a written Payout Figure on ALL your loans
2. Go to another bank and ask them to give you a written quote to take over the whole portfolio you hold with the “offending” bank.
3. When you receive the written offer, fax it to your current bank and ask them whether they’re prepared to BETTER your other.Please be aware that the BOLDER customers, with the BIGGER PORTFOLIOS are on far more favourable terms and interest rates than average investors. Sounds like it’s about time you started to EXPECT (you don’t have to demand) to be put onto a higher level of service.
For my money, I’d be PMing one of the brokers who answered you above. Take your pick, they all qualify as +CF savvy.
Cheers
GregThe lender is concerned with how you will reduce your debt exposure (forget about logic here – they assess loans without any consideration about what happens in the real world). Therefore, you need to appease this concern. Present them with an “exit strategy”. For example, say to them that you purposely want to retain debt (for tax purposes) and you plan is to hold onto the property. Tell them that if you ever got into trouble with making the repayments that you would sell one of the properties. Similarly, if you struggled on the income side of things you could sell some properties to pay out the debt. If you have a few investment properties then they should be more comfortable.
If they won’t budge then you will have to try another lender.
Cheers
Stu
There is one bank that I know of that discriminates on age of clients. They generally do not like loans exceeding a persons expected working life – otherwise how will they pay it back!??
I don’t know if they can do this legally, but they must be able to.
Terryw
Discover Home Loans
Mortgage Broker
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
Lenders can’t discriminate on age. There is no set retirement age in australia, so they cannot say that your retirement age is 65 so therefore they cannot let you have a loan term that goes over this. I would be going back to them and telling them this and also if they don’t give you the longer term, you wil be taking all your business elsewhere. Then contact a broker, who will find you a lender that will do the loan for the term you want.
Thanks all so much for your advice.
I really don’t understand mortgage brokers or their role, so of course I went straight to the ‘which bank’.Greg I will follow your advice and get an option in writing from another bank and see how I go. Barring that going well then I will try a broker.
And do you know they had the nerve to tell me I can’t put my fortnightly wages into the MISA account because their computers break down all the time!!!!!! I must have been dealing with a goon. I’ll try somewhere else
thanks all so much
Jules [biggrin]
JULES1
Email MeI knew it!
Terryw
Discover Home Loans
Mortgage Broker
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
Jules,
As Kerri pointed out, a bank cannot discriminate. The easy way to get your terms if you want to stay with them is to write a letter regarding the discrimination and that you will make a formal complaint to the banking ombudsman if they refuse to provide the loan over a normal term of 30 years. If age was their only excuse, they have to agree to the longer term.
This would never have happened if you used a mortgage adviser because all correspondence goes through them and they would have jumped on it in seconds if they knew about the anti-discrimination laws.
Robert Bou-Hamdan
Mortgage AdviserA bank can discriminate on any grounds it likes, except those existing in the anti discrimination acts. those grounds include age. the bank will tell the bfso they are discriminating on teh basis of ability to repay. You can still try a complaint to the BFSO but I don’t think you’d get far.
Banks get it from the other side, people like me complaining that they have lent $ to those who can’t afford to repay.
The BFSO will probably find they are being responsible.banks don’t discriminate on age, they do however have to be able to demonstrate that an applicant can service the loan for the total maximum term of the loan.
get it?
as an earlier post mentioned, sw, ‘logic’ doesn’t factor
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker Brisbanebrahms, how exactly does a lender demonstrate serviceability for the “total maximum term of the loan”?
In all the full doc 30 year loans I have ever done, I have only ever asked for two current payslips and a payment summary and the loans get approved. I have never asked for a 30 year plan and have never been asked by the lender for the applicant’s intentions over the term of the loan.
I have only demonstrated serviceability as of the day of application (and just prior to settlement in some cases where the loan has dragged on following a pre-approval).
Robert Bou-Hamdan
Mortgage AdviserRob, this forum isn’t about you….or me….
get it??
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneJules
Is the loan for an IP or PPOR?Have you thought about fixed term interest only loans at all?
The payments are lower and its only the interest that is deductible after all
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by brahms:Rob, this forum isn’t about you….or me….
get it??
Actually, no I don’t ‘get it’. I thought we were discussing finance and I merely questioned one of your comments providing an example from my experiences to support my point. Have I missed something?
If you cannot or do not want to answer, just don’t. Your above comments make absolutely no sense to me at all especially considering we are in a ‘discussion’ forum where I thought people could discuss various aspects of related topics and were actually encouraged to do so.
Would you prefer I do not challenge comments I consider incorrect on this forum so those who read this forum leave with incorrect or poor information?
Robert Bou-Hamdan
Mortgage Adviser
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