how much is too much with one lender?

[SOULFLY3]

just a quick one! how much is too much borrowing from one lender? atm got 400k with one lender could i stretch it to 750k odd ?
or should i seek an alternative lender now?


Thanks

 

[Qlds007]

Depends who the lender is (some are better than others) and whether you are happy in having all your eggs in 1 basket.

As long as they are done as separate loans i think $750K would be fine.

 

[Rob Williams]

I was ticking along nicely with one lender. Until I hit the $1.2m mark. The they stopped returning my calls.
The sound of crickets is not what you want to hear when you've signed an unconditional contract in order to secure a sweet deal.
Best to diversfy before you have to, in my opinion, based on my experience.

 

[SOULFLY3]

ok great both my loans are currently with NAB, if i was to go one more loan with them it would be the last with the same lender and yes would be all seperate loans. so there should be no problem going to 750k with the one bank?

 

[Rob Williams]

ok great both my loans are currently with NAB, if i was to go one more loan with them it would be the last with the same lender and yes would be all seperate loans. so there should be no problem going to 750k with the one bank?

If they lend it to you, then where's the problem. You only know you've got a problem when you don't hear the Beep .. Beep of the money truck backing up to your door.
If they say no, find another money truck. I did and haven't looked back since.

 

[SOULFLY3]

ok no worries rob thanks for that ill talk with them tomorrow.

 

[Rolf Latham]

Hiya

One thing that hasnt been mentioned here is if the loans need LMI.

If yes, then under a mill is a good position before you move, if no, then its not that critical, unless your servicing is tight.

If your servicing is tight, by spreading the loans, the lower exposure to the last lender will mean you will get a better hearing, because many lenders dont load other lenders loans with PI penalties or their own assessment margins.



ta
rolf

 

[Nathan]

max each one out then move on. u need a good broker to help structure your affairs, who knows their gear. more u get the more work u need to do. for me its not a matter of buying property so much its a matter of getting a loan and finding the right security for it.

I think around 700k is good per lender.

 

[Nathan]

Basically change lender once they ask for too much. you will know that when they ask for more deposits or x collateralising.

 

[SOULFLY3]

Awesome thanks guy for reply ill talk with NAB if thats no good ill get Steve (bradsdad) on board as he has helped me a fair bit

definaltely after this 3rd ip ill require help.

 

[Qlds007]

Soul

Why not get Steve on board from day 1 as i am sure he will process the deal through NAB quicker and more professionally than you having to deal with the Bank direct.

 

[Rob Williams]

Soul

Why not get Steve on board from day 1 as i am sure he will process the deal through NAB quicker and more professionally than you having to deal with the Bank direct.

I agree. If I'd known how much easier it is dealing with brokers, I'd have started using their services earlier in the game.
Go get Steve on board. Nothing to lose and lots to gain. No brainer.