Bank says no!

[toony]

I would argue that the banks are looking after their interests first, which may parallel with the interests of the borrower, but not necessarily.

Agreed. Banks are into risk management too. They have been around a very long time. They have seen booms and busts. I doubt mja has!!!!!!

All i am saying approach further borrowings with caution. Extending yourself to 80% + 10% for buffer in todays market is approaching with caution.

 

[toony]

I would argue that the banks are looking after their interests first, which may parallel with the interests of the borrower, but not necessarily.

Agreed. Banks are into risk management too. They have been around a very long time. They have seen booms and busts. I doubt mja has!!!!!!

All i am saying approach further borrowings with caution. Extending yourself to 80% + 10% for buffer in todays market is NOT approaching with caution.

 

[Housemender]

We don't actively plan to buy any more properties, at least in the near future (unless we came across a cheapey that was a great buy and the figures stacked up)

We just wanted to increase our line of credit up to an 80% LVR so that we would have a good "buffer" - and we may have used a very small amount of it for a reno.

On the issue of affordability, in our cirumstances (which I won't go into now), we feel more than comfortable with our borrowings/risk. Absolutely everything we do is very carefully thought out, considered, "number-crunched" etc.

Janie

 

[asdf]

Is this HSBC or Citi? Haven't offered my portfolio to them yet but worth knowing where their limits are at before I do.

On the issue of low bank vals, I don't think the banks are doing this on purpose. I would suggest perhaps its on the valuer's recommendations simply because the market in parts of Eastern seaboard (+SA) have moved so fast in the last 12 months. Bodes well if you have equity cos you have just knocked over the asset poor competitors who rely on 95% LVRs.

 

[Bushy]

Hi Housemender,

Have you checked out what your break costs are for closing out a loan. Chances are as interest rates have climbed it should be minimal. If you only pull one prop out you will be doing the bank a HUGE favour by lessening their exposure. Make sure you pick the prop with their worst valuation for the biggest advantage with another bank.

BTW, I agree with you that debt is time, but it is no good if you leave it in an offset with the same bank that has all your loans, I think it woud be better to swing it over to another offset in another bank against another property - at least that bank would love you. Only ideas, not advice.

Regards Bushy