We are looking to sell one property and buy another. We will need bridging finance. The NAB is well on the way to saying yes, but with the condition we only have 90 days to sell. It sounds unreasonable to me. I don't see what the problem is if we are meeting all our commitments. Any advice?
NAB are not the best when it comes to Bridging Financing and there are a lot better options out there.
Without more information it is of course difficult to comment or advise further.
Are they doing it as a true bridging deal ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
That’s a NAB and Westpac thing and to be honest they don’t have a lot of customer taking up their bridging loan due to this condition.
Another banks will do it for 6 month and the longest i seen is 12 month- but that means the new property will be with the new bank of course…
It’s a matter of choosing the right bank for the right situation.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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Hi Richard. Can I email you privately to discuss?
Only going with NAB as that is where all our loans are. Commonwealth was going to be next on my list.
CBA would be the better option for bridging loan.
They allow up to 12 month – as long as you can service the “total bridging” debt interest only in advance + have the payment ready.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Lee
Sure feel free to drop me a line.
Email address below.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
By the way; NAB and westpac allows up to 6 month ( 180 days) unless you don’t have enough interest/deposit to cap etc…
Shoot Richard an email and he be able to decyfer for you.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Do you guys as brokers have the power to approve bridging finance? How long does it take? NAB have stuffed me around for a week.
We can’t approve anything. It’s up to the bank to approve- we still need to follow their rules and terms.
What we can do is;
1. Assist
2. Advice
3. Submit the deal in a better light ( you be surprised, same file…same bank but different outcome – as we have access to the credit team + we know what they are looking for)
4. Fight a case on your behalf.…all to your benefit rather then the banks.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Good to know Michael. What sort of time frame are you looking at. We have actually placed an offer that is being considered (verbal and no money involved). So we are looking to do things quickly now.
It depends how fast you can get the info/docs to the broker + LVR? LMI involved?, how complex your situation is.
NAB isn’t all that busy right now lol…so it can range from 2 days up to 10 days for an unconditional. One of the good and bad thing about NAB is their internal valuation process; if it’s under a certain LVR it can be done pretty quickly as it be a desktop valuation done by one of their inexperienced monkeys
If you have everything ready + no need to request for more docs then it be good to go within a few days, for most bridging loans it does take a few days more ~4-5 days due to the valuation…it’s normally a full valuation for bridging. But in your case im guessing the valuation has been done already? or your LVR is low?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Because the property we are selling is unencumbered that is helping. It is more that they think we cannot service the debt afterwards. All the other investment loans pay for themselves but for some reason they think our salary needs to be able to cobver them.
Do you think the NAB will give in regarding the 90 day sale?
unencumbered – helps,
But servicing the “peak” debt is the most important and this determines how “long” this bridging condition will be approved at; as i said the max is 180 days with NAB…
So if they are telling you 90 days they are pretty much saying you can only afford you peak debt for 3 month.1. They did their calculation wrong ( it happens…even us brokers get it wrong sometimes)
2. Presenting the information in the wrong light- Showing the wrong level of debt then you need.
3. They are right – and you can really only afford a peak debt of 3 month….so hence a NAB bridging loan is not right for you- but this doesn’t mean you don’t fit the servicing of another lenders- as they look at peak debt differently.
4. The credit guy your dealing with just issues a standard pre-approval?
5/ Consider a different option rather then bridging finance.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
What other option would you suggest other than bridging finance?
You probably heard it before- it does depend on your situation and financial, one random suggestion just from the top of my head
– Declare new place as IP-so rental to service the new mortgage…this allows you to hold the mortgage ( and since your place is unencumbered ; it be 1 mortgage only? ) while you have time to sell the place your currently in. This should work given you will end up with one mortgage from start to end.
P.s The NAB staff actually have to ASK and apply for a 6month bridging finance with the credit team…if she/he didn’t put a request in- it goes to the standard 3 month….so maybe it’s a simple matter of ASKING lol
Should have mentioned this earlier; but given it’s 10pm forgetting little info like this is forgivable.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanbks for all the info. I will sleep on it and call them in the morning.
forgetting little info like this is forgivable.You must be logged in to reply to this topic. If you don't have an account, you can register here.
