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From: Mike .
I don't think the banks like to give their money away
From: Peter and Marina(warning-a very long long long long post)
Date: 18 Nov 2000
Time: 08:48:28
I am now working on my 4th property acquistion and I have spent 4 weeks working on the finance structure. I first approached my bank lender fully prepared, cash flow stmnts, plans etc. She has NO power to say yes or no.
What they do is they take the application and it goes to a so called ASSESSOR. They are the ones that make the decision without meeting you. I don't know how well my case was presented but I would say not that well because the ASSESOR knocked back the loan and said you cannot service it.I asked for a meeting with the assessor but they would not oblige.
It truly makes me upset because they did not take into account the tax refunds, they take into account only 70% of rent and they did not look at my share portfolio. Mind you I own my own home and do not pay rent or mortgage. I have ample cashflow and I CAN SERVICE. Bank of Melbourne said the same thing.
I think what they are scared of is that I already have a HUGE DEBT. I love debt but by the same token I have a plan and I have cashflow. I would not jeopardise my home if I did not believe in my capabilities.
The ANZ loan manager said your loan should be approved but when it went to the ASSESSOR he said NO YOUR PROPERTY IS TOO RENTAL RELIANT. (what IP property is not rental reliant) I nearly fell off my chair, what baloney. He also said that IN THE VIEW OF PAYING YOUR PROPERTIES OFF IN 25 YEARS YOU CANNOT SERVICE ANOTHER PROPERTY. I said to him I am not going to pay them off I only want Interest only. Interest only was mentioned in the original application so I do not even know why he mentioned paying them off.
I gave him a full briefing on how IPs work and was shocked at the naive attitude he had. I phoned up the original person who took my application and they said that they did not see a problem with it but the assessor must be too CONSERVATIVE. He also said that because it is complicated the easiest thing for him to say is NO. I swear this is not complicated.
By this stage we had enough of bank staff hindering our wealth creation process (NOT ONE HAD AN IP THEMSELVES), so I contacted a fantastic Mortgage broker. He came down straight away and spent 2 and a half hours with us. He was quick, knowledgable and most of all positive. He took our application to the TOP person of this particular bank and got it approved in a couple of hours. It was such fantastic news. He only deals with the TOP and HIGH UP Bank managers.
In the meantime I said to our mortgage broker to approach one more bank on our behalf because they have a T.O.C. and it would work in our favour better. So again he goes to the top person and now he has 7 people working on our application. We should have an answer with this bank by Tuesday. If they say no I still have the other one.
Mortgage Brokers get paid by the banks and are not biased towards any particular bank. They look after you and they are working for you. I truly recommend to anyone to go through a mortgage broker.
If anything we are now more inspired than ever. Don't give up, believe in yourself and your plan. Remember IF IT WAS EASY EVERYONE WOULD BE DOING IT. I think I read somewhere that only 1% of the population own more than 2 Ips or is it 3 Ips.
Peter. L
I don't think the banks like to give their money away
From: Peter and Marina(warning-a very long long long long post)
Date: 18 Nov 2000
Time: 08:48:28
I am now working on my 4th property acquistion and I have spent 4 weeks working on the finance structure. I first approached my bank lender fully prepared, cash flow stmnts, plans etc. She has NO power to say yes or no.
What they do is they take the application and it goes to a so called ASSESSOR. They are the ones that make the decision without meeting you. I don't know how well my case was presented but I would say not that well because the ASSESOR knocked back the loan and said you cannot service it.I asked for a meeting with the assessor but they would not oblige.
It truly makes me upset because they did not take into account the tax refunds, they take into account only 70% of rent and they did not look at my share portfolio. Mind you I own my own home and do not pay rent or mortgage. I have ample cashflow and I CAN SERVICE. Bank of Melbourne said the same thing.
I think what they are scared of is that I already have a HUGE DEBT. I love debt but by the same token I have a plan and I have cashflow. I would not jeopardise my home if I did not believe in my capabilities.
The ANZ loan manager said your loan should be approved but when it went to the ASSESSOR he said NO YOUR PROPERTY IS TOO RENTAL RELIANT. (what IP property is not rental reliant) I nearly fell off my chair, what baloney. He also said that IN THE VIEW OF PAYING YOUR PROPERTIES OFF IN 25 YEARS YOU CANNOT SERVICE ANOTHER PROPERTY. I said to him I am not going to pay them off I only want Interest only. Interest only was mentioned in the original application so I do not even know why he mentioned paying them off.
I gave him a full briefing on how IPs work and was shocked at the naive attitude he had. I phoned up the original person who took my application and they said that they did not see a problem with it but the assessor must be too CONSERVATIVE. He also said that because it is complicated the easiest thing for him to say is NO. I swear this is not complicated.
By this stage we had enough of bank staff hindering our wealth creation process (NOT ONE HAD AN IP THEMSELVES), so I contacted a fantastic Mortgage broker. He came down straight away and spent 2 and a half hours with us. He was quick, knowledgable and most of all positive. He took our application to the TOP person of this particular bank and got it approved in a couple of hours. It was such fantastic news. He only deals with the TOP and HIGH UP Bank managers.
In the meantime I said to our mortgage broker to approach one more bank on our behalf because they have a T.O.C. and it would work in our favour better. So again he goes to the top person and now he has 7 people working on our application. We should have an answer with this bank by Tuesday. If they say no I still have the other one.
Mortgage Brokers get paid by the banks and are not biased towards any particular bank. They look after you and they are working for you. I truly recommend to anyone to go through a mortgage broker.
If anything we are now more inspired than ever. Don't give up, believe in yourself and your plan. Remember IF IT WAS EASY EVERYONE WOULD BE DOING IT. I think I read somewhere that only 1% of the population own more than 2 Ips or is it 3 Ips.
Peter. L
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