I have loans with westpac, interstar, Adelaide bank and Nationwide. I have tried to get a loan with HSBC and St George but they are telling me no because I am too rental reliant. I earn 30,000 more in rents than what my wage is. all my loans conbined are geared positive, (just!).
Is my next option to go for low doc etc. any suggestions!Ally,
I find having all of my loans with the one institution gives me leverage against them, and also shows a bit of loyalty….a two way street if you will.
I suppose when the 5th of 6th institution sees themselves at the back of the “security queue”, they get a little hesitant.
Have you thought about going with one Lender – bulk numbers talk the Bank’s language.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Ally,
Dazzling is right on the ball here. If it is at all possible to have all your loans with the one institution then this demonstrates loyalty and this then allows leverage. The ability to leverage is very important in business.
Low doc loans bear a higher interest and if your loans are geared positive (just) then will they remain positive? Especially if interest rates rise a little more, as they are predicted to do so.
Good luck.
pr
Agree with Dazzling also..we have all our Loans with NAB and got a discount on rates etc, however, looking at new IP, restructuring and possibly moving banks..negotiation time [biggrin]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI totally disagree with the suggestions of having all loans with the One lender,
For instance, If allymac had all lending with either St George or HSBC, she would still be declined on the basis of being to rent reliant, regardless if the loans were with One lender or spread across multiple lenders,
And in this scenario a refinance to another lender of part or the whole portfolio would be required to access available equity.Allymac,
With two declines you should have a Mortgage Broker crunch the numbers before submitting any further loan applications, as any further declines/hits on your Baycorp will not make it any easier to get finance approved, 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.
Hi Steve, good to see you up and about at this hour!!!
Originally posted by allymac:I have loans with westpac, interstar, Adelaide bank and Nationwide.
I would be moving the lot. Excluding Westpac, your lenders are not competitive on rate regarding fully documented loans.
I have tried to get a loan with HSBC and St George but they are telling me no because I am too rental reliant.I would like to see HSBC knock you back using a broker. They actively market their willingness to take 100% of rental income into account for servicing and how much they love investors. St George is much tougher on servicing.
I earn 30,000 more in rents than what my wage is. all my loans conbined are geared positive, (just!).I guess it would also depend on the security types and their locations. Positive usually indicates low LVRs. I don’t know why this would be a problem for a lender.
Is my next option to go for low doc etc. any suggestions!Sorry Pete, not all Low Doc loans are higher. You can get great rates on low docs these days and it might be a good option for you as you would be one of the few that can declare a REAL income instead of the usual ‘LIE’ Doc application.
Steve, I am a little confused. Don’t you think that a package (MAV) might be perfect here? Maximum exposure issues should not kick in until about $5,000,000 depending on the security offered and deductibility is considered allowing more borrowing. A good rate of 6.62 or 6.72 may also apply (depending on total limits) for a cheap $300 a year with no other upfront and ongoing fees and charges. ??????
Robert Bou-Hamdan
Mortgage AdviserHi Rob,
To clarify my comment regarding all loans with One lender, I believe its Ok to have multiple loans with one lender, as in a pro pack etc, but at a certain stage it’s a good idea to spread your lending and keep further options open.Yes I also thought the HSBC decline was strange in light of their liberal servicing criteria,
Agree the MAV package may be ok, depending on size of the portfolio and future investing plans, this could possibly be coupled with the current westpac loan, but again this depends on the total numbers and is all supposition without further info,Agree also regarding the rates and choice of lenders, Adelaide possibly if they were fixed, as they did have some good 3 year rates a while back, but Interstar?? Why?
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.
Hi Rob,
I can see how a low doc loan at one institution may be “cheaper” than a standard loan at another institution but please correct me if I’m wrong, how can a low doc loan be cheaper than a standard loan at any given institution?
Cheers
pr
Hi Pete,
I don’t know why you are asking your question. I never said that a low doc is cheaper than the same loan taken as fully documented. There is a third choice – the same as the full doc loans! There are two lenders who do not have low doc products but do have low doc policies which apply to their standard loans without loading the rates.
Robert Bou-Hamdan
Mortgage AdviserHi Rob,
Thanks for clarifying my confusion. I obviously misunderstood your comment earlier where you stated that not all low doc loans are higher.
Cheers
pr
Those 2am posts should be clearer!!! Sorry.
))Robert Bou-Hamdan
Mortgage AdviserJust bare in mind that HSBC (I have all my loans with them) will only lend 65% LVR after you have 3 or more investment properties with them…I just found that out after making an offer on my 4th investment property!
Yeah, they are fast becoming the ‘Clayton’s’ investors bank!
Robert Bou-Hamdan
Mortgage Adviser
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