What to do when your broker tells you that lenders get very nervous when your property portfolio nears the $1 million. Also tell you that 4 properties in one town is enough and won’t finance anymore there. Is this the same for all? Any ideas on how to get around this?
Hi I’m new and wish I had your problem! To repeat what I have been told at a seminar, where the present too had this problem, he diversified the owners. As in, one for himself, one for his wife/partner, one for the family trust and one for the company he owns (or one for each of the companies he owns), etc…..
It was also mentioned to utiles more than one lender with the different homes/ family trusts, companies, just mix it up. That way you can offer more than one mortgage as sweetner to the lender. Anytime you want to swap portfolios, drop me line….
[exhappy]C@34
Perhaps the lender has a point, not to be overlooked.
Risk minimisation tells you to buy a bit everywhere. Suppose you have 10 properties in a small town and the local mill closes down…
May God prosper you always.[biggrin]
Marcomfg i thought i was the only one
I was in a similar situation a month ago with CBA
i earn 90 -100K and my recent potfolio was valued at 1.075mil 4 rpops in 3 places
they said no to even 60% LOC(i asked via mortgage broker about 3-4 times) and boy was i pissed
so i said stuff you CBA i’m going elsewhere, their products are good but their services are
$h!# – mostly incompetent lazy buffoons
they didn’t even change the name from vendor to my name for the 3rd property causing confusion for the next bank i went to(ie St George)
well now so far so good
St. George gives just as good a product, caused me no grief, settlement no problems and everything in the end thx to my mortgage broker went smoothly
So if i were you, if youre hitting the million mark and if you’re with CBA as most people are (getting sucked into it in the first place 0 and friggin wants 60% LVR ie wants all your property without giving you much
So with most major banks they’re a pain in the arse esp CBA.. CBA….CBA…..CBA
Go with someone else and get a good mortgage broker, revalue, refinance might cost a bit initially but gives you good long term outlook and establishmentmy 2c worth of CBA bagging hrrrummphh……incompetent………greedy…
Originally posted by staffreid129310:What to do when your broker tells you that lenders get very nervous when your property portfolio nears the $1 million. Also tell you that 4 properties in one town is enough and won’t finance anymore there. Is this the same for all? Any ideas on how to get around this?
Staffreid,
A common problem I’m afraid, but the solution can be as simple as taking your business elsewhere, your Broker should be able to assist you in finding a more accommodating lender,I would also suggest you spread your loans with multiple lenders,
Good Luck,Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
HI, I can sympathise. Wife and I turned up tp ANZ and asked to use the extra $210k out of our 7 properties with them to buy more. They laughed at us. We went to Suncorp and its the best move we made. Got the $210k, used as deposits and added 6 new properties to portfolio in May last year. The 6 new ones then gained $223k in 6 weeks.
Good broker is essential. Do not use a broker with ex Comm bank staff. We got told we were not using the LODOC loans in the ‘spirit in which they were intended’. I kept a straight face on that one until after I had left the building.
Good Luck
DD
Thanks to all for this forum. I ahve been wondering about this very thing. Although I am a little while off the $1m mark it is a question that I have been asking myself.
Good on you steve for this format of communication. It’s a ripper.
Jack.
Too big it is not. Think, you must not.Want, you must not. Do you must. (Yoda)
Hi all I really appreciate the replies. I have tried to use other lenders but they want all my properties before they will do anything. I guess I will have to fork out the money for gains in the long run. It always seems to be a one way street with these banks and I agree the banks with the most shopfronts dont necessarily give the best service! I wouldn’t mind some advice on good brokers out there either! Seems mine has a favourite lender!!!!!![biggrin]
As we use a mortgage broker & work with whatever lenders are best at the time, we didn’t have a problem when we crossed that level (quite a while ago now).
More of an issue were the mortgage insurers – as there are only two if you are still requiring LMI it can become a juggling act whe deciding which property to place with which insurer – and this can influence the choice of lender, as some prefer one insurer over the other.
Only a year ago you could really only have a max of $1M debt insured through these insurers – though now it’s up at the $1.5M mark. That’s total BTW – one is at $750K, one at $800K – so if your lender only uses one insurer you will definitely have to shop around or go below the LMI threshold (usually 80%) to keep everyone happy
Cheers,
Aceyducey
Quote:Originally posted by calvin@thirty4:Hi I’m new and wish I had your problem! To repeat what I have been told at a seminar, where the present too had this problem, he diversified the owners. As in, one for himself, one for his wife/partner, one for the family trust and one for the company he owns (or one for each of the companies he owns), etc…..
It was also mentioned to utiles more than one lender with the different homes/ family trusts, companies, just mix it up. That way you can offer more than one mortgage as sweetner to the lender. Anytime you want to swap portfolios, drop me line….
[exhappy]This works up to a point (ie using different individuals) but the idea of having multiple companies or trusts is not as useful as in the past. Most of the time you are required to be guarantor for loans to your trust or company, and nowadays that is listed on your credit report. This is only a recent development (ie last 1-2 years). What it means is that when a lender checks your credit report, they now see all the guarantees you have given. It used to be that you could guarantee millions of dollars of loans in different structures, and the next lender wouldn’t know.
To a great extent that option is now gone.
But there are other solutions, it just means you may have to pay more in interest!Keep smiling
FelicityA few more basic ideas:
1. Do a few property trades ie. buy and sell for cash. This will allow you to put down a slightly larger deposit on that next IP and the banks will be a little more comfortable.
2. Draw out equity and invest in alternative cashflow investments(a good financial planner can show you a few) that return more than the bank interest on the loan thereby creating surplus cashflow and increased servicibility to go buy another IP. Note: Not many lenders here will accept this towards servicibility
3. Wrap or Lease option an existing IP to increase cashflow and servicibility.
Just my 2 cents.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi
We’ve also struck a deadend with the National. They won’t accept the security we’re offering for our next investment property. They are also dropping LVR on investment properties to 75%.We’re planning on switching to Bendigo Bank – very friendly and helpful.
hi guys,
allow me to be blunt. I HATE OUR BANKS AND AVOID THEM AT ANY COST!! I use Wizard as my lender of choice and go with ING who are fantstic…check them out.
Hi fjficm,
thats kinda strange… havent had any problems with CBA, apart from slow service every now and again, but cant complain. Actually, im finding it the opposite, every now and again, CBA will call up, and just check if everything is ok, if all account are in order, and they even asked a few times, if i would like some further more loans and credit cards increase…
… not sure what the go is, but i do know for platinum holders, there are plenty and many courtesy calls and vip treatments [thumbsup2]
Cheers,
sisEvery bank has its problems. But shopping around and splitting your loans between various lenders can stretch your borrowing capacity much further.
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
Terry is right, we have deals with Bank S, lender R, lender I, Lender P, Bank A, and an offshoot of bank N. Great brokers are determined by how much their clients love them.
I love mine.
DD
We originally started with St George, but then got knocked back on a loan as they thought we ‘were too aggressive’, and that prices were going to fall – this was in November 01! Plus, we were already jointly over their ‘comfort level’.
So to get that deal across the line we went with HomeLoans Ltd. Another deal we went to with HomeLoans, and they stuffed us around so bad that we had 6 days left on our notice to complete, and still no answer either way from them (after an initial yes!). We got that one with Pepper – in the time frame, but hefty fees, and massive early payout which we paid, and went to IMB!
Latest loan is with RAMS.
Staffreid, as Terry suggested, shop around and split loans with various institutions. Take one refinance to another bank, and then go to them for the next purchases, until they get a bit nervous, then either back to the first, or to another bank etc. etc. there’s an awful lot of lenders out there that you can use…..
Sometimes it’s good to be an existing customer, other times it doesn’t really matter.
Cheers
MelHi Staffreid,
Give Aust Central Credit Union in SA. PM me for more details, but they were extremely helpful and lent way more than what my currently ANZ lender would.
Michael Maddy
[email protected]
Canberra, AusRegarding the initial question – try a different broker – or find out just how many lenders your broker services (raised eyebrow). It depends on your scenario and how you have structured your loans – for a second opinion email me and I’ll tell you what I think…
DD
Regarding the comment about ex CBA brokers… well thats a bit of a rough generalization my friend… do you think every ex CBA employee is “ex” because they loved their job?? I will not defame them here, but I went to work on my own because I KNEW I could do a MUCH better job if I was the boss…. catch my drift?[wink2]
How good your broker is depends on the person, not on the company they are with, nor on the company they were with… the answer lies in their head. I would have laughed too though, the spirit… hee hee [tongue]
Liz Wilson
Mortgage Lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
