All Topics / Finance / No Bank loyalty anymore !!

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  • Profile photo of sgoodessgoodes
    Member
    @sgoodes
    Join Date: 2012
    Post Count: 21

    Gone are the days of banks being loyal. I've been banking with CBA for 30 yrs, had 5 successful mortgages, perfect credit history and earn in excess of 180k pa and been employed in the same job for 10 yrs. Recently lost everything thanks to my ex wife to the tune of 350k + inc my home. Getting back on my feet financialy and have savings of approx 30k with a small P/L. Im trying to get back in the real estate market either with an IP or new PPOR. Have found a mortgagee sale on a beautiful home. Bank has valued at 470k and i have a chance to buy it for 400-410k. Called my bank (CBA) to see what they could do in regards to deposit and they may aswell have said "go take a jump". Come back when you have 20%.
    Im livid at the treatment after all these yrs of being a loyal CBA customer only to be told they wont help.
    Closing all accounts and taking my business elsewhere.

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    I recommend you speak with a broker.

    Not only will they save you a lot of legwork they can also 'assess' your situation to see whether or not borrowings are possible and, if borrowings are possible, can get your structure right moving forward.

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400

    What was the reason CBA have given in requiring 20% deposit?

    PLC | Phoenix Loan Consulting
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    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of xdrewxdrew
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    @xdrew
    Join Date: 2010
    Post Count: 479

    I agree with Derek.

    First thing any bank or financial institution will do is check your credit history. And the number of times you've applied for a loan and been rejected will show up on your credit record.

    Commbank is incredibly conservative on their lending practises inhouse. However .. going through brokers you may find that commbank issued funds indirectly are actually easier to get.

    Brokers are getting the opportunities to stick together much more difficult deals now as the loan competition is heating up. They are at a point where the 'good' brokers distinguish themselves from the pack.

    But .. every application for credit is taken into consideration by banks and financial institutions when considering your application. So do it once or twice .. and do your application properly.

    Profile photo of sgoodessgoodes
    Member
    @sgoodes
    Join Date: 2012
    Post Count: 21

    I have no idea. They shift the goal posts to suit themselves these days. In one breath they are all good to incorporate difference between actual bank value against purchase price in regards to deposit to allow me buy a decent home knowing that I am no risk then next breath change everything. I have a perfect credit history, secure employment 180k +, 30 yrs history with cba and it means nothing.

    Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    Depite your actions, most people are simply not loyal to their bank of financial institution. So it is of no wonder they are no longer loyal to us, it is disappointing but I guess that is just how things are.

    It is strange, because you think showing loyalty might be a way of differentiating themselves from the other banks. But like you have shown, one bad experience and they are ready to just cut you loose, losing a significant amount of business in the process.

    But just find a mortgage broker and shop around, you may not have a large deposit but with the income and past credit history you should be able to find suitable finance somewhere.

    Profile photo of sgoodessgoodes
    Member
    @sgoodes
    Join Date: 2012
    Post Count: 21

    You've hit the nail on the head there and will be speaking with a couple of brokers I know over the next few days and take it from there. Never again will I deal with CBA.

    Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    The question is this, has there ever been real bank loyalty?
    For me personally, I use different banks for different reasons.

    But i agree with Derek and xdrew, speak with a broker and see where you stand….

    Also with certain banks they may just have certain credit polices they need to follow i guess.

    Cheers good luck
    and you will be in your feet agian

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
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    Your first port of call in finance :)

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    Your problem I think is that someone at the bank told you a furphy ie thet they can use the valuation over purchase price to give you instant equity….that is clearly not policy. It has always been policy to take the lower of the two when calcultiing the LVR.

    Therfore you are going to have to pay lemders mortgage insurance (LMI) or have 20% deposit or have a guarantor supply additional security.

    Here is an idea….

    If you have a relative that has equity in a property and is willing to be a guarantor for you short term you could use thier property as additional security to settle the purchase without paying LMI, then a month after settlement you apply to have the guarantor removed and the bank will be obligded to to go off the valuation they have on file. Then you have the equity!

    One big problem though is if they order another valuation at that point which could be the tricky part as if the sale goes through at the lower amount this may negaitively affect the subsequent valuation amount. However CBA normal policy is they WONT order a new valuation if the last one is less than 3 months old.

    Marty McDonald | Mortgage Experts
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    Profile photo of Pat007Pat007
    Member
    @pat007
    Join Date: 2012
    Post Count: 71

    Also like alot of times in business you need to remind yourself that a business is made of people, and with a large corporation you may hit a roadblock simply by speaking to someone who is technically correct, but unhelpfull or lacking in knowledge about what they can do for you.

    Try getting a meeting with a branch manager, if they are not helpful maybe try another branch.

    Find the right person, thats the key.

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64
    Pat007 wrote:
    Also like alot of times in business you need to remind yourself that a business is made of people, and with a large corporation you may hit a roadblock simply by speaking to someone who is technically correct, but unhelpfull or lacking in knowledge about what they can do for you.

    Try getting a meeting with a branch manager, if they are not helpful maybe try another branch.

    Find the right person, thats the key.

    Too true its people that matter, I think 2 opportunities is enough though!

    Marty McDonald | Mortgage Experts
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    Profile photo of xdrewxdrew
    Participant
    @xdrew
    Join Date: 2010
    Post Count: 479

    The banks tend to switch and change in regards to their flexiblity with what they can do.

    In my early years of investing i found the NAB very open .. very flexible and very willing to commit as long as I matched most of the criteria required. I have had dealings with them in the last 4 years and its really not the same bank.

    CBA was always conservative .. no matter which branch i went to. In fact .. the most frustrating criteria with CBA was they would be all yes-men (remember how much i HATE yes-men) until they had me in their office .. writing up an application. Then they would start piling on extra constraints (cancel some CCards?) and offering me packages that were nothing like what i had actually wanted.

    ANZ the last few years has been pushing for the business. However .. unlike the bigger two (CBA and NAB) ANZ doesnt have as much clout on the wholesale markets. A little worse on the rate .. but a little more flexible deal.

    Westpac over the years? Clowns in a banksuit. Wouldnt know business if it walked in the door (several times) and asked for the business.

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    If you are talking from your own personal experience with each lender I dont think that really qualifies you to comment on banks credit policies in general.

    CBA conservative? I think most brokers would disagree with you there. They do all sorts of lending that others wouldn’t. Perhaps not great with serviceability so that is perhaps where you are coming from? but by far the most lenient in many other areas.

    Marty McDonald | Mortgage Experts
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    Profile photo of xdrewxdrew
    Participant
    @xdrew
    Join Date: 2010
    Post Count: 479

    I can ONLY talk from personal experience .. and any people i have previously spoken to about their dealings.

    However .. when you come into a deal .. bring more than enough security .. more than enough income .. start the deal because they are all affirmative .. and they come back with extinguishing my 190k of credit cards? Sorry .. my cards werent part of the deal .. they werent offered as part of the deal .. they ARE used by me on a regular basis and repaid, but they werent even considered because I had a borrowing position where i was only chasing less than 40% of the total value of the assets.

    Yes .. i'm bringing my own situation into this. Simply because I have now done roughly the same thing with CBA about five times. And there has never been a person in ANY of the branches i've been to (i have dealt with eight separate branches) who has actually offered me a parity with what i actually asked for. In trying to organise me a deal .. they have offered to cancel my cards several times, tried to explain to me that i wasnt bringing enough income to the party (thats what effective tax planning is all about guys!) and then offered me a deal that really just reflected they were up for selling a package deal REGARDLESS of what I wanted.

    If you feel that i'm making it a personal saga .. its not. Its an opportunity offered several times to a major bank .. and taken up with another one. The same deal .. the same statistics .. the same rents .. without a loss of my lines of credit or a shakedown of my total assets to produce a result. I'm sorry if that sounds personal or biased .. but thats what I want in the end. A bank that listens to me and produces a package to suit what my needs are.

    Thats why my summary of CBA remains beyond my personal viewpoint and a warning to people as to why I continue to find difficulty with them as a bank.

    I would appreciate if you have a series of better dealings you can relate to me. But as such .. that remains my story.

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    I am currently applying to move my security and loans to another bank as I have had difficulties with how much they will lend me and even had an account put on hold without my knowledge. Been a customer for 17 years up until the recent takeover of the bank.

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400
    sgoodes wrote:
    I have no idea. They shift the goal posts to suit themselves these days. In one breath they are all good to incorporate difference between actual bank value against purchase price in regards to deposit to allow me buy a decent home knowing that I am no risk then next breath change everything. I have a perfect credit history, secure employment 180k +, 30 yrs history with cba and it means nothing.

    My guess is they must look upon it as a favorable sale, and the LMI underwriter has rejected it.

    PLC | Phoenix Loan Consulting
    Email Me | Phone Me

    Melbourne based Mortgage Broker | Making Finance Simple

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