Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Some folks get very excited about the piddly little discounts they get by having mulitple facilitied with one lender. These pale into insignificance, though, when you can't release equity or they give you shoddy valuations when they do let you. Best to look at the big picture, not just the tiny discount they suck you in with.
A mate of mine has had all his borrowings with one big 4 lender for 10 yrs or so. He's borrowed a few $M secured by a few IP, a PPOR & one comm prop. He always pays interest on time, has good servicability & has a fantastic relationship with his local branch manager. However, a couple of months ago the risk guys in the back room pulled the plug - out of the blue, he was told to reduce his LVR by an unspecified amount within 90 days.I'm particularly interested in hearing from those who have all their lending with one bank (with a few loans, not just one!), and any positive or negative experiences from this...
Today it looks likely that he'll lose everything in fire sales within a month.
A mate of mine has had all his borrowings with one big 4 lender for 10 yrs or so. He's borrowed a few $M secured by a few IP, a PPOR & one comm prop. He always pays interest on time, has good servicability & has a fantastic relationship with his local branch manager. However, a couple of months ago the risk guys in the back room pulled the plug - out of the blue, he was told to reduce his LVR by an unspecified amount within 90 days.
A mate of mine has had all his borrowings with one big 4 lender for 10 yrs or so. He's borrowed a few $M secured by a few IP, a PPOR & one comm prop. He always pays interest on time, has good servicability & has a fantastic relationship with his local branch manager. However, a couple of months ago the risk guys in the back room pulled the plug - out of the blue, he was told to reduce his LVR by an unspecified amount within 90 days.
The local branch manager is v. sympathetic, but helpless. Today it looks likely that he'll lose everything in fire sales within a month.
X-coll is a risk that is likely to be fatal in the bad times.
Only one bank per each IP
If I had to recommend a path, it'd be X-coll all the way. Get as big as you can as fast as you can before the cops arrive and the spotlights get turned on. By that, I mean use your equity as deposits for other titles. Sort out the entanglement later
What about the situation of having several loans with one lender, but not formally X-colled?
ie. each property loan is still secured by one property.
Did a broker somewhere just keel over?
The problem is JIT is that mortgage documents have an all monies clause that means when you sell one property they equity must be repaid to the lender if requested.
A broker could qualify this though if I have the wrong terminology.