I am a HSBC Premier customer (high value client) and have an excellent mortgage history with the bank. (had previous mortgage loans with the bank and never missed a payment)
Approx 2 months, i took out a loan in a foreign currency (HK$) loan maxing at 75% LVR- taking advantage of the 4% interest.
Prior to taking out the loan, I had asked my personal Premier mortgage manager that if the A$ falls and the property is in negative equity, would the property be subject to a call? He ensured me that as long as mortgage repayments are up to date, the bank would not make a call on the property. This was merely 2 months ago.
In the past month, the A$ has dropped significantly and today, i got an email from my premier mortgage manager saying since the A$ has dropped and the LVR is now 87% that I must A.) Provide additional security or B.) Put A$150,000 equivalent into the loan!!!!!!!!!
Are you kidding me???? Ive only made one mortgage repayments since the loan has been established and the bank has hit me with this.
I feel completely cheated!!!!! 1.) HSBC told me face to face that the bank will not 'call' on the property if mortgage repayments are made. 2.) Both myself and the bank discussed the A$ falling in the future and both parties predicted this happening in the future- why is the bank suddenly requesting additional security knowing this would happen but never mentioned additional security? Obviously they were more excited about me taking out the loan with HSBC!!!! I feel that I have been lied to.
What about all the people who took out loans back in 2003 peak and their property prices had fallen since. Their LVR now is greater than what was approved- but those people never had to provide additional security.
Im going to fight this to the end!!!! Would like to hear from anyone who can point me to the right direction for help.
The property magazines and smh would love a story on this.
Approx 2 months, i took out a loan in a foreign currency (HK$) loan maxing at 75% LVR- taking advantage of the 4% interest.
Prior to taking out the loan, I had asked my personal Premier mortgage manager that if the A$ falls and the property is in negative equity, would the property be subject to a call? He ensured me that as long as mortgage repayments are up to date, the bank would not make a call on the property. This was merely 2 months ago.
In the past month, the A$ has dropped significantly and today, i got an email from my premier mortgage manager saying since the A$ has dropped and the LVR is now 87% that I must A.) Provide additional security or B.) Put A$150,000 equivalent into the loan!!!!!!!!!
Are you kidding me???? Ive only made one mortgage repayments since the loan has been established and the bank has hit me with this.
I feel completely cheated!!!!! 1.) HSBC told me face to face that the bank will not 'call' on the property if mortgage repayments are made. 2.) Both myself and the bank discussed the A$ falling in the future and both parties predicted this happening in the future- why is the bank suddenly requesting additional security knowing this would happen but never mentioned additional security? Obviously they were more excited about me taking out the loan with HSBC!!!! I feel that I have been lied to.
What about all the people who took out loans back in 2003 peak and their property prices had fallen since. Their LVR now is greater than what was approved- but those people never had to provide additional security.
Im going to fight this to the end!!!! Would like to hear from anyone who can point me to the right direction for help.
The property magazines and smh would love a story on this.