Best bank?

[suggo]

Our bank, ANZ, has just told us that it will not revalue our houses for twelve months after the last evaluation(three months ago) !

Has anyone else come across this in recent times??

Anyway, we have just been denied a loan by the morgage ins as our LVR is at 81% and we are into the million mark, this is what the bank manager has told us is the reason for denial. We have spoken to a couple of other lenders (Aussie and Wizard) and they have been surprised that the bank would do this. We would only need an extra $20 grand rise across four houses for us to be able to aquire this loan free from morgage ins.
So are the two we are talking to ok or are there any other banks or lenders that you guys may suggest??

 

[suggo]

Something I left out, the bank even said that they would not recognise a valuation from their own valuer even if we forked out the dough for it!!

 

[Rolf Latham]

Hiya

Sorry to be a pain, but there is light at the end of the tunnel.

Several issues that an independent broker would have seen coming.

ANZ uses only PMI for mortgage insurance, so when they feel you have had too much exposure then thats that.

The lender can do what they like ultimately. You can vote with your feet, though i suspect your are chained and shackled with Xcoll, and will be wasting a huge amount of LMI.

A broker would have spread the risk amongst the 2 insurers so that you would have some latitude left now, which can still be fixed.

Get yourself to an independent broker I would say.

ta

rolf

 

[suggo]

So pretty much what your saying is that from now on if the bank won't take the loan without morgage ins, we won't get the loan!
What about this policy of not revaluing? It seems so wrong!

Any brokers you'd reccomend up in Brisbane Rolf?
(Good ones are soooo hard to find)

 

[Rolf Latham]

Hi Suggo


Nah what im saying is that you have got too many eggs in one basket, LMI or not. The ANZ service model is ok, but there are lenders out there that will lend 25 to 50 % more depending on the mix.

I feel they arent telling you the truth, not lying just not telling the whole story. Its very likley that they dont want to reval because even if you got an lvr of 75 % they probably wouldnt do it,

As for Bris Broker ............
Heheheh, I have had that problem for the last 2 years :O)

ta

rolf

 

[Rolf Schaefer]

Hi Suggo,
all lenders have different serviceability models. Like Rolf from Sydney is saying get some help from an independent mortgage broker.

Some brokers do work independent of location (with tools such as e-mail, fax and phone communication this can easily done).

 

[landlubber]

Hi Suggo,
When you get to your loan/s size ( around the mill...give or take) you are going to struggle with all of the "normal" banks if your LVR is near 80% and you have all your business with one lender. They are maxed out on mortgage insurance (I think the limit per any one customer is normally only about $500K ...(Rolf would know better than me.))... and then they just hit their nervousness threshold. Doesn't seem to matter how good your servicibality is or how good a customer you are. Time to talk to a broker (or you can do it yourself if you have time for the photocopying and the legwork)and spread your business around.
Get a few more irons in the fire mate !
If you want to keep growing it's absolutely necessary.

Regards
LL

 

[chrislaw]

Suggo,

I am with ANZ and had Bris ppty valued in Feb,2003 at 210k then did more work and valued again in Aug by same ppl (banks valuer) at 290k. Manager at F/Valley (on holidays at present) never said I couldn't get new valuations just said I would have had to do alot of work to have it come in better.
I explained the work i did, he set it up, valuer out in 2 days notice.
I did follow the forum advice re getting other sales info and RE agents written quotes (320-340k), then handed all that to the bank to give to valuer.
The valuation was exactly were I thought it would come in, given banks like a nice margin.

Chris

 

[Investor55]

Suggo,

I have heard the same thing from a NAB business banker. He said that properties will not be revalued within a twelve month period unless you do work to upgrade them. This could be obtaining a DA application for redevelopment, a simple renovation or other activity that would increase the value of the property.
What he did say however that this was a new bank POLICY. From my experience POLICY can be broken but it will be more difficult that it was in the past.

Cheers

BM

 

[Aceyducey]

Suggo,

Tell the ANZ that you understand their position, no problems - you'll be going to talk to a few other lenders in order to unlock your equity....

You may be surprised at how fast their position may change if they think they could lose your business altogether over a little thing like 'policy'.

Remember, the word policy is a way banks use to prevent people who are not assertive or are small lenders from getting what they want and for bank employees to cover their arses.

When you are assertive they waive the policy & suddenly look like good guys for helping you, saving their own 'face'.

Cheers,

Aceyducey

 

[Rolf Latham]

Hiya

Dont get off track here folks, the major thing is that the risk NEEDS to be spread.

While thay may be succesful this time round, what about the next time ?

Ta

rolf

 

[suggo]

Just to keep you all up to date, I have contacted a couple of brokers and am in the process of working out the best road to take.

Thanks for the comments and help!

 

[ZMan]

Originally posted by suggo
Our bank, ANZ, has just told us that it will not revalue our houses for twelve months after the last evaluation(three months ago) !

Has anyone else come across this in recent times??

Anyway, we have just been denied a loan by the morgage ins as our LVR is at 81% and we are into the million mark, this is what the bank manager has told us is the reason for denial. We have spoken to a couple of other lenders (Aussie and Wizard) and they have been surprised that the bank would do this. We would only need an extra $20 grand rise across four houses for us to be able to aquire this loan free from morgage ins.
So are the two we are talking to ok or are there any other banks or lenders that you guys may suggest??

Just to add my two cents worth to this hot topic.

I guess one is in the best position to negotiate when there is competition and you have reasonable credit history and ability to borrow.

I paid off my PPOR with St.George. Still have one IP with Westpac and the other with Aussie Home Loan. Just acquired the third IP - all in Sydney.

I was looking to refinance two IPs and to borrow for a third via a Line of Credit facility.

So I embarked upon to find the best deal for me and for me that was to setup a Line of Credit facility at the best interest, no cost of transactional banking, 100% offset facility, ability to top up the LOC as I build on equity and a few other things.

I am in a good position in terms of my credit history and ability to borrow. None the less, it took me three months to negotiate with a range of banks in order to achieve the best outcome for me.

Here is a quick overview of the positions that I was able to achieve.
With a broker from Melbourne the best position was 5.87% investment loand and Homesite as the lender. Not many other benefits.

NAB private banker was able to offer investment loan facility similar to a LOC but not excatly. This was at 5.87% with usual NAB banking products and no transactional banking costs except for a credit card.

St.George was able to offer me only 5.97% portfolio loan and that is after using them for 15 years for my banking. I guess no more St.George for me.

The worst possible scenario was in fact with Westpac and that is after I've been a customer for 6 years and currently with a mortgage close to $300,000K (and I am sure you guessed it --- I'll be Westpac's customer no more). In fact their offer was for investment loan (rather than LOC) at 5.87% and a range of "hidden" charges. Very disapointed in Westpac.


ANZ was able to offer only 5.97% LOC and was not flexible at all on any other feature and would charge the usual costs for every day banking.

The best position I was able to obtain for my circumstances was in fact with CBA where I am getting proper LOC with 1% off standard variable rate for the life of loan and for all amounts of borrowing, no cost on any transaction accounts including credit cards. So the rate is 5.57% for a Line of Credit facility that no other bank was able to match.

ZMan

 

[abcdiamond]

Zman

How long ago did you get that 5.57% with CBA, it seems a good rate.