Bank Policy Changing ?

[keithj]

I've just done a reval & the bank has approved an extra $180K top up loan.

The bank is suggesting I bring all my other loans over to them & is offering bigger than usual rate discounts for all loans if I do so. I told them I'd wasn't inclined to as I'd incur break fees - they said find out how much the break fees are & they'd 'see what they could do'......

Two years ago they were telling me to go elsewhere because they felt over exposed to me.

Has anyone else experienced a complete reversal in policy recently ?

[geoffw]

I haven't been to my bigest lender, as my circumstances have changed.

But make sure that you don't cross collaterise if you do bring other properties across- ensure that each property is security for itself only. Some institutions have had a policy of enforcing x-coll.

[Mike F]

Good to hear banks offering discount without being asked/pushed...

How much discount are they offering? --> push them to give you the same discount for the loans you currently have with them, saying that once you get the discount you will consider moving the others.

Cheers
Mike F

[agent007]

My understanding is also that if your loan portfolio with a particular institution is of certain amount (a little bit over a million), your complete account will be checked frequently to check how your LVR is performing against market conditions.

Regards,
James.

[shaunwalker]

i just got Ed nixon to do a top up loan for me.
banks has agreed, from 184100 to 232,000 nice!
i'm that one step closer to the Z3 bmw :)

cheers
shaun

[Bricks & Mortar]

My understanding is also that if your loan portfolio with a particular institution is of certain amount (a little bit over a million), your complete account will be checked frequently to check how your LVR is performing against market conditions.

Regards,
James.
James,
Depends on which bank (No, not that one!)
They will give you a personal manager as apposed to the general enquires desk.

cheers
Timm

[keithj]

How much discount are they offering? --> push them to give you the same discount for the loans you currently have with them, saying that once you get the discount you will consider moving the others.The Pro package gives 0.15% discount off fixed rates - they're offering a further 0.15% and also the usual 0.2% discount for prepayment 1yr in advance - that adds up to 0.5% off a fixed rate. The current fixed rates are 6.89% or 6.99%. I didn't enquire about var rates.

[Les]

G'day Keithj,
I told them I'd wasn't inclined to as I'd incur break fees - they said find out how much the break fees are & they'd 'see what they could do'......
I reckon it wouldn't hurt to "see what they could do". But first, I'd call the current Mortgagee to determine just what your Break Costs are (you might get a pleasant surprise - I did). I found out that I could "break" my current Fixed Loans and NOT pay Break Costs. Why? Because they were fixed around two years ago, and, since then, Interest Rates have gone up by 0.75%. So, if I were to Break now, it would cost me nothing (might even be a cheque in the mail...)

Maybe you are in the same boat? If so, the only decision you have to make is, "What do you gain by going with this new Bank?" What will be THEIR new Fixed Rate (if you want to go that way again...)? How good a deal will they do for you? Will x-coll enter the equation? etc. etc.

But it doesn't hurt to ask the questions - just don't sign anything until you're sure - and Good Luck,

Regards,

[Rolf Latham]

Hiya

Rate for risk at the end of the day. While we all think it wont happen to us, I can only recount what Peter Spann said the other nite.

Dont cross-collateralise, and be aware that in most cases if you dont, and you have all property with the one lender, their all monies clause will tie you up just as nicely.

There is a definite shift in the market as to what the lenders will give at the moment - the pie has gotten smaller and they want a larger slice of the smaller pie, even to the extent of throwing out normal prudent lending rules to make budgets. In theory great for borrowers, but perhaps just another risk.


ta
rolf

[Les]

G'day Rolf,
the pie has gotten smaller and they want a larger slice of the smaller pie
Hmmm - food for thought ..... (Oh, no!! Now I'm sounding like Geoffw :p

Regards,

[geoffw]

Oh, no!! Now I'm sounding like Geoffw :pNo, nobody sounds like GeoffW (except maybe me at times)

[ralph wiggum]

Gee Geoff, I thought you might have come up with something like
"the banks want to have their cake and eat it too" etc etc :)

[geoffw]

Sorry Ralph. I'm up to my feet in footlongs ATM.

[ralph wiggum]

Good to hear you're not LOAFING around - sorry, that's really bad.