We have been told that you should spread your loans out with several banks so it is harder for them to sell your properties if anything went wrong.
We are unsure what to do as we have two loans with Westpac and a third pending. We were going to go with another lender but will have to pay mortgage insurance but if we stick with Westpac we do not.
Not really sure what to do. Would appreciate any advice.
Thanks heaps
Two or three with the one bank shouldn’t be much of a problem, when you get to 10 or more you probably should diversify your lenders!
Regarding mortgage insurance, you should speak with one of the many brokers on this forum if you’re starting to have problems with needing insurance.
We have been told that you should spread your loans out with several banks so it is harder for them to sell your properties if anything went wrong.
My goodness what cowboy told you this?
If your need to make it harder for them to sell your properties if anything went wrong You should not be in the game.
I feal you should use the same bank, keep a good repour with the same person in that bank.
Regardshttp://www.owner.com.au
http://www.owner.com.au/phototour/listing_phototour.cfm?listingid=22315Thanks for your help. Yes we are very new in the property investing arena so your feedback is appreciated.
Thanks heaps
Hi Dimmick,
It seems Westpac are about to cross-collateralise your portfolio in order to avoid mortgage insurance,
Reading between the lines I assume you have available equity and intend to borrow 100% secured across 2 or more properties.Providing you have the required equity there should be no need to pay mortgage insurance with any lender, and further more no need for Westpac to cross colaterise the next purchase if you should decide to use them for the Third loan, as 80/20 finance will avoid cross colaterisation, I hope this helps. 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,
I have to agree that if you are concerned about making it difficult for the bank to sell your property you should re-assess your position. I’d like to mention some benefits from sticking with one lender:
1. You can get a single loan manager with whom you can develop a relationship with. this makes it easier to ask questions and stay in the loop.
2. You are more likely to be targeted by loyalty schemes or discounts.
3. You have greater leverage when it comes to negotiating rates. Yes! You can negotiate rates!
4. NAB (and no doubt others will follow) have introduced “Total Finance” which is a pilot program for working with high value clients to manage their finance from a single platform. This allows access to total equity without cross collatoralisation in the “classical” sense. Only a select few high value clients were selected for this pilot… (not me though[glum2])However while all that is nice and grand I’d say you should go with whoever gives you the best deal. I personally find great value in a single point of contact for managing my finances. It saves me plenty of time and I value my time very highly.
Surrey.
PS: I don’t work for NAB nor do I recommend you necessarily go with them, just giving an example of something I know about. (my partner works for NAB and tells me all sorts of things)
I have all my finances with the same bank. I like the relationship I have with my manager. I can call him up and ask a question or run it by him…what do you think my chances are…sort of thing. But more than that, we dont have wges and payslips because we have our own business so going to different banks is quite painfull, proving our income, providing tax details ets. The bank we are with knows our business from when we started it 8 years ago to today. I just send my manager my MYOB figures to date and off he goes!I cant imagine the nightmare of trying to reestablish ourselves with a new bank!
JodieI prefer to have my properties with different banks to provide a safe back up in case one bank doesn’t like the deal. I use to rely on one but when the person I was normally dealing with was transferred it was like starting all over again. Also it is good to shop around and see what special packages they are offerring at that moment. It’s also interesting to see how far they will go to get you a better package if they think you might bring all your deals across to them.
Originally posted by Dimmick:We have been told that you should spread your loans out with several banks so it is harder for them to sell your properties if anything went wrong.
We are unsure what to do as we have two loans with Westpac and a third pending. We were going to go with another lender but will have to pay mortgage insurance but if we stick with Westpac we do not.
Not really sure what to do. Would appreciate any advice.
Thanks heaps
I have heaps of loans all with one Bank, NAB. As long as you are honest at application about your income and expenses for servicing the loans you should be ok. Big banks tend to be careful in lending in the first place and are extremely adverse to having to sell anyone up.
The only limitation I found when borrowing from the one lender, was I reached the limit of their lending. Not my limit, theirs. There were unwilling to go above $1.4m at any one time. No sense of adventure that lot.[biggrin]
If you want to get out of a hole, first stop digging.
Hi
I have several loans with Westpac and I have been with them for many years. I have a manager at Professional and EXecutive. When I have a deal I give him a call to get an indication.very quick. Also I have managed to get loans for my son who no douct would not have been given a loan due to his financial situation (at uni). Most loans are crossed cat.but this does not botter me, it means more docs to sign every time I need a loan.
Also, I am a westpac shareholder. Discount of point six percent of all loans plus some reduction of other fees.
Idon/t work for Westpac.
hrm
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