From: Gail H
Hi everyone,
I have been desperately trying to get finance for a block of flats that I have purchased. My 2 problems have been that I am newly self-employed and that the flats are not strata titled but are 5 properties on one title.
Well, my usual (non bank) lender just wasn't interested. In fact, they told me that unless I had been self-employed a minimum of 2 years, then I would have to go on a no docs, high interest loan, no exceptions. In fact, to release equity from my home, I would have to refinance my entire home loan on a no docs loan!
To cut a long and arduous story short, I have found that it is one of the big banks who will show me most flexibility. They will take my earnings so far this financial year and project them forward (hallelujah) and will fund the flats on an 80/20 LVR. Plus they will put me onto the professional package which offers interest rate discounts.
It hasn't come through yet,so we'll see, but it is interesting to know how much it pays to persevere and shop around.
Lessons? Well, it seems to be that the bigger banks now offer a much much more diversified product these days, plus they are able to bring a little bit more discretion to the deal. The smaller lenders seemed more rigid to me, but maybe that's just my experience. I guess the smaller lenders have to have more standardised risk management policies in place.
Cheers everyone,
Gail
Hi everyone,
I have been desperately trying to get finance for a block of flats that I have purchased. My 2 problems have been that I am newly self-employed and that the flats are not strata titled but are 5 properties on one title.
Well, my usual (non bank) lender just wasn't interested. In fact, they told me that unless I had been self-employed a minimum of 2 years, then I would have to go on a no docs, high interest loan, no exceptions. In fact, to release equity from my home, I would have to refinance my entire home loan on a no docs loan!
To cut a long and arduous story short, I have found that it is one of the big banks who will show me most flexibility. They will take my earnings so far this financial year and project them forward (hallelujah) and will fund the flats on an 80/20 LVR. Plus they will put me onto the professional package which offers interest rate discounts.
It hasn't come through yet,so we'll see, but it is interesting to know how much it pays to persevere and shop around.
Lessons? Well, it seems to be that the bigger banks now offer a much much more diversified product these days, plus they are able to bring a little bit more discretion to the deal. The smaller lenders seemed more rigid to me, but maybe that's just my experience. I guess the smaller lenders have to have more standardised risk management policies in place.
Cheers everyone,
Gail
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