can mortgage brokers access medfin and investec

[remingbi]

Hi my question is medfin being a special division within nab and investec having a special division for medicos, can my broker use these later for ip loans, as opposed to needing to go thru them directly thru their staff
Also is adelaide bk, advantedge investor friendly at the later stages
Thanks in advance

 

[Peter_Tersteeg]

Yes and no to all questions.

We can get access to medfin at some level, but honestly it wouldn't be a choice I'd want to make. My experiences in that end of NAB haven't been great, if that's the product clients need I tend to suggest they will have a better experience going direct.

I'd also suggest that some of these products have a lot of window dressing to make them look good when they're not really. They tend to advertise no LMI medico loans but they often pad a lower LVR loan with a personal loan to avoid the LMI component. It often costs more than the LMI might have.

Adelaide and Advantedge are quite good lenders for later stages in an investment strategy under certain circumstances. Loans over 80% can be difficult with these lenders if you've already got a large portfolio.


Simply choosing lenders in order of how much they'll lend is a flawed strategy. It looks good on paper but rarely stands the test of time.

 

[remingbi]

thanks peter for all that great info
1)so with home side as it is funded by nab, does that mean that investors don't usually use them both to full capacity as they r in effect the same bank??, and u would b double dipping?
2)advantedge being wholesale, is that part of adelaide bk or nab, and if it is part of nab, is it the same problem as above?
3)r adelaide bk and avantedge, home side, r they i/o friendly for 10-15yrs? tick and flick i know nab isn't

many thanks

 

[Peter_Tersteeg]

thanks peter for all that great info
1)so with home side as it is funded by nab, does that mean that investors don't usually use them both to full capacity as they r in effect the same bank??, and u would b double dipping?
2)advantedge being wholesale, is that part of adelaide bk or nab, and if it is part of nab, is it the same problem as above?
3)r adelaide bk and avantedge, home side, r they i/o friendly for 10-15yrs? tick and flick i know nab isn't

many thanks

Whilst NAB direct and HomeSide (now called NAB Broker) are technically separate business units, they are slowly merging and they are more or less the same bank. If you're asking about diverifying across NAB and HomeSide the way you might between the CBA and Westpac, it doesn't work.

Advantedge is the wholesale part of NAB. It's my understanding that there is more separation here, but I wouldn't rely on this.

The only two lenders I'd consider truely I/O friendly as you've described are Westpac and CBA. Even then it's not a guarantee. Unfortunate the CBA and Westpac don't tend to scale quite as well for servicing purposes as NAB and a few others when it comes to investment portfolio building.

 

[Mick C]

thanks peter for all that great info
1)so with home side as it is funded by nab, does that mean that investors don't usually use them both to full capacity as they r in effect the same bank??, and u would b double dipping?
2)advantedge being wholesale, is that part of adelaide bk or nab, and if it is part of nab, is it the same problem as above?
3)r adelaide bk and avantedge, home side, r they i/o friendly for 10-15yrs? tick and flick i know nab isn't

many thanks

1. Homeside is NAB...just a different product line.

2. Advanatge is part of NAB ( or a subsidiary anyway...) not Adelaide bank.
Having said that they work as 2 different companies and have different policy and diff funding lines and niche as well


3. Homeside/Nab is 5 years I/O max.

 

[remingbi]

thanks peter and mick
so do u guys consider Adelaide bank and its funding line a good lender to use later in ip portfolio as well as macquarie, nab and amp

 

[Mick C]

Yep.

But it depends what LVR....Adelaide bank is very bad in the >80% LVR in the later stage as their DUA is like a floppy banana that's gone off...

 

[Bran]

Yes and no to all questions.


I'd also suggest that some of these products have a lot of window dressing to make them look good when they're not really. They tend to advertise no LMI medico loans but they often pad a lower LVR loan with a personal loan to avoid the LMI component. It often costs more than the LMI might have.






Is this something that is disclosed and obvious to the borrower? I haven't come across any such structure

 

[remingbi]

Bran, which bank out of curiosity was doing that limited special 95%no lmi medico package at 4.38%
thanks

 

[Peter_Tersteeg]

Yes and no to all questions.


I'd also suggest that some of these products have a lot of window dressing to make them look good when they're not really. They tend to advertise no LMI medico loans but they often pad a lower LVR loan with a personal loan to avoid the LMI component. It often costs more than the LMI might have.

Is this something that is disclosed and obvious to the borrower? I haven't come across any such structure

As a similar example, there's a recent thread in the finance section about a Bank of Queensland no LMI 95% product for accountants. It's apparent that it's a 90% no LMI loan, with an additional 5% financed at personal loan rates.

http://somersoft.com/forums/showthread.php?t=107406

I imagine that it is disclosed in the paperwork, but it's not immediately obvious.

 

[Bran]

As a similar example, there's a recent thread in the finance section about a Bank of Queensland no LMI 95% product for accountants. It's apparent that it's a 90% no LMI loan, with an additional 5% financed at personal loan rates.

http://somersoft.com/forums/showthread.php?t=107406

I imagine that it is disclosed in the paperwork, but it's not immediately obvious.

Interesting, I haven't come across this but am only in the early stages. The personal loan rates to my knowledge however are at home loan interest rates anyway, several colleagues have car loans etc at 5% or less. It's only my (unsecured) line of credit at 12% that hurts.

One condition is that LVR is 90% by three years - perhaps that is the personal loan component.