Where do you go when the banks say no (I’m a poet)

You go to a mortgage broker- Richard Taylor, Michael Chan from Shape or Jamie from Pass Go. If it can be done, these guys will do it.

Cheers,
Luke

Dear Energy for Anarcy,

I am myself a property investor and few properties under my belt, I would say more than five. So, I do get knocked back by the banks for borrowing more on the properties.

Not that we dont fit the criteria, the average bank employee can understand only few steps. If a couple having 2 salaries buy a first home and after few years trying to get a investment loan, they could help you. Anything more that that wealth the people who are employed by banks cannot understand and do often make mistakes when submitting you application.

If Genworth calculator has given ok for you to borrow X amount and bank comes back and say, you can only borrow y amount. There is something wrong. I would recomend you to goto a broker who is investor himself and he will be better to understand and you will be able borrow more with better rates.

Everytime, I goto a bank, manager there says you can borrow and he pre approves when conditional approval comes, they say cant do it because there is not enough serviceability. And I goto a experinced broker, they will go through each document and make sure we get the approval.

Banks are good, not the people working in it I have come across one bank manager. Recently, I went to bank financial advisor asking how to invest X amount. After 3 hours of paper work. He gave a fixed deposit paper. He himself is poor and average pay, what can they show us.

Hope this post help you

Hari Yellina

Hi energy4anarchy

If you prefer the face to face contact – I can recommend Pete Tersteeg from Sage Lending in Nunawading (get in quick though – he's off to Fiji next week and I'm sure finance will be the furthest thing from his mind).

If you don't require the face to face contact – then give Michael above a call. He's more than capable of working through some scenarios with you.

Cheers

Jamie

Ahhh, the old melon head syndrome – it's prevalent in the industry.

Whilst my head's not quite a melon, most of my business is done with interstate clients that I've never physically met – technology makes it pretty easy.

Cheers

Jamie

Hi energy4anarchy,

Unfortunately in the general sense, I would have to agree with Yellina's comments regarding banking staff.  I am an active investor and also work as a lender in a retail branch.  Given my experiences I find it fairly easy to ensure my customers are looked after and their situation is explained clearly to the credit managers and mortgage insurers, however this isn't always the case industry wide.

Be it a broker, banker or any financier, ensuring the person completing the loan application has sufficient experience and knowledge of your situation will be your best advantage to gaining the finance you need more often.

The main issue I find working at one bank, is that we may have a great deal, but for one reason or another the banks tolerance for the particular asset risk at the time of application isn't what they're after, or they're already over-exposed – say the Gold Coast unit market or something similar.  Brokers that are keeping in constant contact with many financiers about current risk profiles can easily then flick the same deal to another lender where this isn't the case, rather than you doing the run around.

Hope that helps.

Sam

Hi there, we are actually in need of a wrapper.

I just posted a thread and then saw your thread and thought you might be interested.

My wife and I are looking to buy a well priced house and
I don’t qualify for a mainstream loan, but my wife has a great size deposit. we have been rejected already due to a bad credit report dating back 4 years in my name. and was told it would be difficult to get any loan in the current finance climate.

The property price is 210,00 and we could easily put in 40-50k+ depending on stamp duty and legals etc.

We would be happy with paying interest above the average.

Any help also to point us in the direction would be much appreciated.

Cheers

+ who told u, that you don’t qualify for a mainstream loan? the big 4?

i find some clients who “don’t qualify” especially client who has a history of Bankruptcy think there is no hope, but in fact plenty of lenders even the big 4 would lend with a bit of creativity.

Pretty much If you have enough deposit for a low LVR , you will find a lender.

Regards
Michael