finance from N.A.B 4 unit under 50sq.metres

:confused:I was after finance from n.a.b for a unit which is 25 sq.metres for about 200k but they said they wont offer finance for a unit under 50 sq. metres.I specifically wont a loan from this bank and they have offered me finance for 500k but not for a small unit..Has anyone out there ever obtained finance ,especially recently from n.a.b for a smaller unit .thanks
 
Joshy i want to stay with nab as its easier for financing except i guess 4 small units.Their current variable rate 4 me is 6.97% with no fees.i am sure someone must have gotten around this clause at some level in the bank i'm just trying to find out how.I deal with the business banking section and the guy there said he talked to a credit officer and the no lending 4 units under50sq.m is there criteria , he said ,but i think i must have to talk to someone higher up maybe.
 
hi, a few things you have to consider:
1. Location of the unit
2. LVR
Depending on the 2 above you are going to struggle to finance such a small place. Does it even have have a kitchen?
 
Sorry my mistake, it is your grammar that through me off! NAB policy is not too lend for units that small but they make exceptions to differing policies all the time. Like my above post, it will depend on the lvr and location of the unit and how good a "business" customer you are of theirs.
 
no just trying to finance one unit .lvr,kitchen,location wasn't brought up just size of unit....they didn't even want to know that it will return about 5% after strata fees etc which is the main point i would have thought
 
OK then thats your answer, they will not do it for you! Time too look around for another lender or look for a bigger unit. But if you go for another lender LVR and location + servicing will be the key:)
 
What LVR are you looking at? How many units in the complex? Any management agreement in place? Restrictions on ownership/reseidence?

So may things to consider before even looking at possible lenders. The nAB would be my first port of call when looking at a property of that size. I appreciate the pricing discounts you have in place but it just isn't their cup of tea. You need to decide if you want the property of the lender.

Regards
Steve
 
Comm and Wide Bay.

As for needing it to be with NAB because of fees and charges etc, I do understand that, but if you need the money for a purchase, you need to use a lender where it will fit sort of within policy.

AVOID situations where you need to call in a favour or go higher up in the food chain for a policy exemption.

All you do with that is make it harder the next time u want to access some equity ..................or heaven forbid u ever run into trouble and need a helping hand.

ta
rolf
 
You wont get NAB to finance such a property full stop.

I hate to disagree, but my experience that whilst NAB will be difficult, it can be done. We got 4 of 8 units financed by NAB a while back, along with a top up in the last few months. We were restricted to 70% LVR though.

The other 4 of 8 units were financed through a different lender (no one wanted exposure to the whole lot).

All units were 25 sqm or less. They were not student accomidate. They did have standard residential leases. Outside of the security, it was a strong application and we did need to find the right people in the bank to approve it.
 
I hate to disagree, but my experience that whilst NAB will be difficult, it can be done. We got 4 of 8 units financed by NAB a while back, along with a top up in the last few months. We were restricted to 70% LVR though.

The other 4 of 8 units were financed through a different lender (no one wanted exposure to the whole lot).

All units were 25 sqm or less. They were not student accomidate. They did have standard residential leases. Outside of the security, it was a strong application and we did need to find the right people in the bank to approve it.

Have to ask though PT, if you tried to finance 1 of the 8 units with NAB, would you have been successful?

Boods
 
Wide Bay wont accept the deal unless it has a separate bedroom and laundry last time i checked.

PT - oh happy to be corrected. My experience with NAB Broker is a big definate NO.
 
I might have mentioned this but I heard a whisper the other day that 1 when NCCP comes in that if buying units then the banks will be asking what the body corp levies are as they will then be classifying this as a commitment which may affect your servicing.

I think it was at a cba/GE thing one of them mentioned it.

Now one unit may not be significant. But if your strategy is to hold a few units then additional holding costs could be significant enough to blow out servicing well and truly.

It would be interesting if we have to say well you wont get approval for finance due to the body corp commitment eating into your serviceability so go buy a house instead.
 
I might have mentioned this but I heard a whisper the other day that 1 when NCCP comes in that if buying units then the banks will be asking what the body corp levies are as they will then be classifying this as a commitment which may affect your servicing.

I think it was at a cba/GE thing one of them mentioned it.

Now one unit may not be significant. But if your strategy is to hold a few units then additional holding costs could be significant enough to blow out servicing well and truly.

It would be interesting if we have to say well you wont get approval for finance due to the body corp commitment eating into your serviceability so go buy a house instead.

Well of course :)

Houses dont need any maintenance at all...............Now back to more useful lender interpretations of responsible lending.

Miss, what form of contraception do you use and might you have any spousal or parental support in the form of finance ?

Now which version of foxtel is it that you DONT have so I can add the right one to the outgoings.

And what was that about being 55.........hmmmmmmmmmmmmm, 300 000 mortgage paid back over 10 years effective working life, sorry Mr, please apply for your housing commission rental assistance now so u might have access in 10 years time

Sorry bout the derail and the rant.

Hopefully someone will make some sense of the loosely worded portions of the legislation that provide little real guidance, but wield a bog stick.

ta
rolf

ta
rolf
 
From my experiances banks generally like there money to be secured by realestate not shoeboxes when lending via a morgage. Maybe try a personal loan???
 
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