Frequency of switching banks

[poeter]

Hi,

Seeing how banks are very competitive with each other in recent times, would switching banks (for better rates or for better borrowing power) have a negative effect on our portfolio due to more frequent hits on our credit file?

Thanks

 

[Terry_w]

Hi,

Seeing how banks are very competitive with each other in recent times, would switching banks (for better rates or for better borrowing power) have a negative effect on our portfolio due to more frequent hits on our credit file?

Thanks

Not really. but it would depend on how frequent. doing it monthly may not be a good idea!

 

[jpcashflow]

Hi

Hi,

Not at all, I think reviewing your loan portfolio is important, with so many lenders and different products out there you might have a good opportunity to increase your cash flow

 

[Peter_Tersteeg]

Switching lenders costs money. Almost all lenders are being quite competitive at the moment. It's often more cost effective to simply call your broker or banker and see what they can renegotiate before looking elsewhere.

 

[Jamie M]

Agree with Pete. Found out what's available - and ask your current lender to match before committing to the refi. Most majors are pretty receptive to providing a rate discount when there's a risk of losing business.

Cheers

Jamie

 

[Rolf Latham]

Depends on what your end game is.

if its to get the lowest rate, and thats the primary focus, then capacity to get funding and grow the portfolio to what one wants comes second, and is in effect irrelevant.

While its important to control the cost of your funding, and to be sensible with that in not paying too much, it also means to be sensible to not pay to little.

ta
rolf

 

[Mick C]

For equity and lower rate ...most investors would do it once every 12-18 month per property depending on the market and location of the property.

Most investors reply on equity to buy...so it's ok

 

[Rolf Latham]

For equity and lower rate ...most investors would do it once every 12-18 month per property depending on the market and location of the property.

Most investors reply on equity to buy...so it's ok

so by that I guess your average investor loan life is 20mths ?

ta
rolf

 

[Mick C]

so by that I guess your average investor loan life is 20mths ?

ta
rolf

Only for investors that's accumulating equity...Equity shop.
If bank X is giving $40-60k more equity..why not.

We help with the new refinance; so "life of the investor" is well above the 10+ year mark.

JUST that the "initial banks" are short lived.....loyalty in banks is overrated -if equity or rate doesn't match what the investor want ( within reason) ...let the feet do the talking.

 

[Rolf Latham]

JUST that the "initial banks" are short lived.....loyalty in banks is overrated -if equity or rate doesn't match what the investor want ( within reason) ...let the feet do the talking.

let the valuer do the walking

makes sense and I agree


ta
rolf

 

[Marty McDonald]

Not much good if still in lmi territory.