Bank has choked me

C

Christianlaws

Hi all,

I've got a second question for you.

I've only got 1.2m of property and 230 of that is equity.

I'm wanting to extract my equity to go again but my broker has told me that Because I've now changed jobs and only on 70k PA that I now longer even service for the loans I have. One of the properties is my PPOR. Is paying me rent but aparently the bank won't take that into consideration and in there eyes I can't afford to live there. Interestingly they refused me for a credit card for the same reasons but I got a rental agreement from my gf and they excepted that and it wasn't a problem. My broker seems to think this wouldn't he the same case with a mortgage.

My thoughts are that I just move out and rent but wondering if anyone has any other suggestions.
 
I have no problem servicing similar debt on similar income. Sounds to me like you're cross collateralized ?
 
My original broker/lender choked me. No more money, no servicing etc. This was due to them really only wanting to put loans with one lender.

Changed brokers and have significantly increased borrowings since then.
 
This may be a case of poor lender choice, structuring or a few other factors. You've only provided some basic figures, but as some of the other posters have mentioned quite a lot is possible on similar wages/debt etc.

You've mentioned in another thread you're looking for an investment savvy broker. A good broker will be able to allude to your current situation and what is possible with your current figures. A Great broker will also be able to tell you how to confront challenges and a framework to get to your desired goals.
 
It doesn't sound right to me either. I was shocked when my broker told me this.

I'm not cross collateralized either... I have read about people building much larger portfolios with less income.

I can provide more details later. What would people need to know to suggest advice?
 
Christianlaws said:
It doesn't sound right to me either. I was shocked when my broker told me this.

I'm not cross collateralized either... I have read about people building much larger portfolios with less income.

I can provide more details later. What would people need to know to suggest advice?
Click to expand...

Way back in the earlier days, we approached a Broker for a loan on a house that cost something like $70k, and we couldn't get the finance. Called Rolf & voila, not only did we get that property, but many others as well. We weren't on a high income either.

In order to progress past a certain point, you really need a broker that can get you to where you want, as most brokers will only really deal with people that have a handful of properties, whereas the brokers who hang out on this forum tend to deal with investors that are addicted to buy properties, so have a ton of experience in this regard.
 
Get your broker (future or past) to set out a plan for you to achieve your goals. Do this first. Before buying or even making your next move - sit down and map out where you can go now, for the next purchase, the next one, etc up to your goals.

This will assist you greatly by:
1) Guiding you on what is achievable with finance.
2) Help assist you in planning the type of property you're looking for. If you're looking for 20 properties on a 70k income, you'll need to get a certain yield, set it up as IO, switch lenders at the appropraite times, be able to withdraw equity at times, etc etc. Its a complex holistic weaved plan that gets you to your goals.

Effectively you'll be able to maximise the amount you can borrow.

With limited information, its likely that you've snookered yourself by going to the wrong lenders early. Also, you're new employment situation may be working against you. This limits the lenders you can go to (not stops, but limits choice) - and if you're ALREADY with the lender and have large debt exposures to them - you've further trapped yourself.

Inadequete planning can get you stuck.

Cheers,
Redom
 
Yes admit it can be frustrating.

I applied for a AMP Bank SMSF loan last year thru one of my Super funds and deal was declined because the Directors of the Trustee company (my wife and i) own 40 unencumbered properties in a series of Family Trusts.

Whllst i was fully aware of the 10+ properties rule being a Broker never actually thought they would adopt the credit policy given we have no borrowing.

Ended up just paying cash for the property in the end but the BDM was ever so apologetic.

Certainly fell for you at that level,

Cheers
 
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