dealings with CBA, advice from here please

hi,

Been reading for a while and a lot of great information. Just recently signed a contract to purchase first investment property in Vic town.

Being self employed i am finding it extremely difficult dealing with the CBA who i have been with for long time and have PPOr loan. Spoke with them 4-5wks ago to discuss and they indicated everything fine go forth and sign contract

Basically:

have PPOR since 1999, inner melbourne, worth around 520k, and have loan at 50k with 67k in redraw

looking to purchase for 213k regional vic, tenanted at $210/wk (bit of scope for improvement there)

myself and partner earn around 55-60k pa, they have missed "14 day subject to finance" and we have since got extension for a week, but really unsure if its going to get through

whereto for finance, take everything over to another bank? or are self employed a casualty of the credit tightening

been ordinary the past few days
thanks
 
Hiya Bounce

I hope thats for Bounce back :)

being SE isnt usually a poblem.

14 days is most unusual for CBA unless thre is some core issue.

Have you provided 2 years tax rtns or are u using their lo doc process ?

Starting somewhere else MAY be better, but may alos make things worse.

really need a bit more input pls

ta
rolf
 
hi,

have provide 2yrs tax return, full tax return details (ie. business and supplement section)

have no credit default ever
thnks
 
chase em and give them an earful so u can work it oif there is a problem OR they are just slow. Givn that they provided a pre approval id be tempted to hold them to it, and get you a formal approval within 24 hrs of your request, after all, .............its only been 2 weeks :)

ta
rolf
 
hi,

Yes chasing and pushing them as much as possible. Hopefully they come back in next few days with everything okay.

thnks
 
CBA right now is BIG on attempting to increase customer service as the exec's bonuses are being paid on it in part. And that translates down the line. So a call to 132221 might help

Just a thought but if you're earning 60k and thats before expenses so the net taxable income is lower then that might affect your borrowing capacity. And the lenders just too stupid/scared to be straight with you, or they mailed you a decline letter and are blowing you off.

IF they have all the info, I'd go into the branch and find out what is the problem/holdup.
 
CBA right now is BIG on attempting to increase customer service as the exec's bonuses are being paid on it in part. And that translates down the line. So a call to 132221 might help

Just a thought but if you're earning 60k and thats before expenses so the net taxable income is lower then that might affect your borrowing capacity. And the lenders just too stupid/scared to be straight with you, or they mailed you a decline letter and are blowing you off.

IF they have all the info, I'd go into the branch and find out what is the problem/holdup.

hi,

no that is our net taxable income, strangely about a week ago a new loan no. appeared in my Netbank, still there albeit not active

strange,
thnks
 
on the surface you figures seem to stack up quite well. Based on their standard discounts at the CBA the rate may not stack up as well.
2 weeks is a long time to be waiting. Could it be they're waiting on a valuation and it's a 3rd party (the valuer) holding the process up?
 
I am on the basic economiser 6.60% for current loan. The consultant mentioned going onto the Wealth Package, i am a bit hesitant for that and will see where that one ends.

The Wealth Package has the annual fee and you really have to bring all your insurance over to Comminsure.

Not sure about valuer Bradsdad but will follow that component up today.
thnks
 
The insurance isn't an issue. As with all banks they ill try and cross sell you the kitchen sink. It doesn't mean you have to take it. You shouldn't be paying over say 6.46% under the package but I suggest you maybe.
 
The rate with the Wealth Package is 6.60%, yearly fee of $350.00 but no application fee ($600). On basic economiser it costs $96.00pa and I get 6.60% rate.

In the wealth package you get 10% discount on insurance and some other "deals", so its good for first 2 years but poor after that i believe unless i bring everything over to CBA/Comminsure.
thnks
 
Wealth vs. no wealth package. This has been done before but the economiser is just that - an economy loan. Doesnt have offsets as compared to a variable and it charges you $50 for every redraw.

Way better loans out there in the market than an economiser with similar pricing and no redraw fees.

And from memory you didnt add back the $600 application fee on the economiser.

With the insurance, 10% of a policy which is 20% more than competitors... lemme guess - the CBA guy told you their insurance was great and cheap. Bank staff are not independent and unbiased. They are(nt) paid to be
 
hi,
I reckon the economiser is great. Thats right you pay a $600 application fee and then nothing per year. Wealth package you have to use all the benefits and pay $350 per year.

So over the past 11yrs i am way ahead on the economiser.
thnks
 
Professional packages vs basic loans...

Both have pro's & con's. If you've applying for a loan every 2 years and never do switches, topups or other variations, and you have no requirement for an offset account, the basic loans usually come out ahead.

If you're more active in your lender, a professional package can put you way ahead.

Most lenders (CBA being the most notable exception), price their basic loan at the same rate as their professional package, it's the fee structures that put you in front or behind.

The CBA offset account (MISA) is pretty average in its functionality. Most other lenders can do better.
 
you dont have to use them all with wealth. its your choice if you do.

Year 1 with economiser you've got 696 in fees
year 1 with wealth 350

Year 2 with economiser 96
Year 2 with wealth 350

So economiser year 1&2 = 792
Wealth = 700

Difference in interest is say $2 a month so 48 so say 750 for 2 years with wealth.

Also other issues like you have to earn it to pay it, if you go to buy another property in say 2-3 years then you're up for another set of fees where with wealth you arent. If you go to switch your economiser to a fixed its quoted as a higher switching fee.

If I was placing business purely on fee/cost then why not look at ING (as an example) which runs at 6.49 with a 220 setup, no ongoings, no monthly.

Probably others you can get for nix.
 
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hi,
Got to get the loan first and the way its going looks as though i will be doing a refinance and a new loan with someone else. Shame, after 11yrs of doing the right thing its all about to end.
thnks
 
Well put.

if it was rate only there are better, if it's package and flexabilty there's better. It all depends on the individual clients needs.


you dont have to use them all with wealth. its your choice if you do.

Year 1 with economiser you've got 696 in fees
year 1 with wealth 350

Year 2 with economiser 96
Year 2 with wealth 350

So economiser year 1&2 = 792
Wealth = 700

Difference in interest is say $2 a month so 48 so say 750 for 2 years with wealth.

Also other issues like you have to earn it to pay it, if you go to buy another property in say 2-3 years then you're up for another set of fees where with wealth you arent. If you go to switch your economiser to a fixed its quoted as a higher switching fee.

If I was placing business purely on fee/cost then why not look at ING (as an example) which runs at 6.49 with a 220 setup, no ongoings, no monthly.

Probably others you can get for nix.
 
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