I have some Low Doc clients with many properties and loans with various lenders. Before they came to me, they were put into BankWest (Full Doc) for three loans. Two of these were fixed at a high rate and one was a business loan.
After sorting out their non-BankWest loans and doing their new purchases, it came down to tidying up the BankWest loans using Low Doc loans.
The business loan was moved to another lender, one property was released from a ridiculous cross-collateralisation and the rate was reduced by more than 1.5%. The clients are reluctant to pull out of the fixed loans on two of their properties as the rate is high so the break costs are also high.
They decided to get a split loan against the two properties but under low doc guidelines. BankWest, after many headaches, have finally approved this loan subject to Mortgage Insurance on the Low Doc portion.
Low and behold, I receive an email today with BankWest requesting $10,400 for mortgage insurance on a split loan of just over $100,000. When I asked why, they said they were charging mortgage insurance on all the loans due to the new portion being under low doc. By the way, the mortgage insurer is Western Lenders (their own insurer as far as I am aware).
Anyway, these clients have an unblemished repayment history (had loans with BankWest for more than 2 years), very strong income (no financials), perfect credit history, are experienced investors and they are a very nice couple just doing their thing and doing it well.
What is the solution????
Well, I am either awaiting a response saying the mortgage insurance will not apply on all loans OR the lot is moving to another more sensible lender as the break costs on the fixed loans are cheaper than the cost of the mortgage insurance.
I have to say that this is one of the most ridiculous things I have seen from a Bank in a very long time!
YAY BANKWEST, you will get a lot of business from me in the future – NOT!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksYes that is very strange.
We use bankwest a fair bit and have not encountered many problems – except they can be slow at times.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
Slow is not the word. This thing dragged on and they didn’t even need to order valuations. I have lost all confidence in BankWest!!!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksFor weeks you have been telling me what nice people banks are.
And the fact this couple is a nice couple is totally irrelevant.I am the biggest mongrel in the world yet that should not matter when it comes to business.You still wnat to try to tell me banks are rational?
gf
GF, you have some serious issues.
When have I called a bank a nice “people”.
It is interesting to see you focus in on one little comment about the clients being ‘nice’. It was provided as background regarding the clients. It may be irrelevant in the strict business sense, but I wouldn’t want to deal with a “mongrel” regardless how much money they had.
In reality, how a person deals with others is very important. Your attitude and your credit history would certainly be reasons why I would also decline any loan you applied for through me if I was a lender.
As for banks being rational, I don’t recall saying this either. Everyone makes mistakes and errors in judgement including banks. In YOUR case though, I think they are spot on!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksLets see how spot on they are as time goes on.
Yes I have serious issues with banks.But I took 10 cents literally and turned it into a decent business that is growing.The first thing I sold out of bankruptcy I did not even own nor could afford to buy.I sold it got paid for it and used the buyers money to purchase the goods so I could deliver them.Literally 10 cents I had.Yet the banks dont recognise that and want to carry on with the prehistoric attitudes they have.They want to charge 36% pa to factor invoices yet have a spread of debtors to minimise risk.COME ON! Loan sharks charge less interest and take more risk.
Justify that if you can and then tell me why I shouldnt be crooked on them.
They are piranhas.What is this reverse mortgage?A way of fleecing old folk?
Offering higher credit card limits all the time to people who cant pay now?
The whole game is a rort.They havent got an ounce of morality between the lot of them and the more money I make the more contempt I have for them and the happier I am that they pissed me off so bad that I will never owe them a cent.gf
Originally posted by upandcoming:Lets see how spot on they are as time goes on.
Yes I have serious issues with banks.But I took 10 cents literally and turned it into a decent business that is growing.The first thing I sold out of bankruptcy I did not even own nor could afford to buy.I sold it got paid for it and used the buyers money to purchase the goods so I could deliver them.Literally 10 cents I had.Yet the banks dont recognise that and want to carry on with the prehistoric attitudes they have.They want to charge 36% pa to factor invoices yet have a spread of debtors to minimise risk.COME ON! Loan sharks charge less interest and take more risk.Hot air!!!
Justify that if you can and then tell me why I shouldnt be crooked on them.I can justify it very easily – EX-BANKRUPT!
From memory, you didn’t pay out your old debts. You just got discharged. I think you would get a little more sympathy and some more respect if you paid out the bankruptcy. The people you owed money to when you went bankrupt also have families to feed and bills to pay. And please don’t justify it by saying they were all large companies or banks as it is your fault that my fees are going up.
They are piranhas.What is this reverse mortgage?A way of fleecing old folk?This is a way to allow the elderly to access funds to enjoy their life in the twilight years. The only ones who think this is a bad product is the greedy beneficiaries who miss out on some of their inheritance.
As for fleecing them, it requires financial adviser and/or solicitor sign-off to ensure they are not fleeced.
Offering higher credit card limits all the time to people who cant pay now?This is only offered to people who have a good credit history. I am certain you are not receiving any offers of credit in the mail. How are the lenders supposed to know if someone cannot afford to pay when they have been paying so well?
The whole game is a rort.They havent got an ounce of morality between the lot of them and the more money I make the more contempt I have for them and the happier I am that they pissed me off so bad that I will never owe them a cent.There is an old saying in business…
Keep your friends close but your enemies closer!!!
You will never meet your full potential if you do not use all the tools available to you. Without banks, your are limiting yourself and your potential to grow even bigger than you think you are getting.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
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