I was having a conversation with a mortgage broker today that suggested HSBC and Macquarie are no longer lending on residential property and not even allowing redraw on existing loans. Can any HSBC or Macquarie customers verify this? I find it hard to believe that they would not allow their customers to redraw for pre-aprooved limits but I fear that other banks may follow this with the credit squeeze taking place.
Hsbc & Macquarie Not Allowing Redraw?
- Thread starter karina
- Start date
OOh yea! My broker has told me this also and.....
prepare for a .8% increase on your Lo Doc Loan.
Time to change banks! What they are doing is worrying!
Not quite true....technically the bank can freeze you from getting access to this also. This is stated when you set-up the offset...they cover their backsides from all sides.
Just watched a show on ACA...where "Which Bank" locked a widow out of access to the offset just to cover their backsides. Once ACA got involved...they released it....and CEO got involved.
It would seem to me the banks have created process monkeys. Try dealing with the idiots on the front lines. I now treat them with the contempt they deserve. Also, I now as policy never just have loans with one bank....too risky.
Hiya
Brokers cant do much with HSBC any more anyways.........
Smells like a major beat up to me
LOC limits being curtailed, yeah thats possible, redraw of advance payments .............nah......
ta
rolf
Brokers cant do much with HSBC any more anyways.........
Smells like a major beat up to me
LOC limits being curtailed, yeah thats possible, redraw of advance payments .............nah......
ta
rolf
Just applied for a new loan and one stipulation was we had to cancel our re-draw. It only had $14,000 and I'd forgotten it was available. We usd the re-draw for reno's.
Cancellation of LOC is what is happening in America ATM. Over there called HELOC Home Equity Line of Credit.
The lending criteria has definately tightened and the banks are covering their backsides after years of encouraging ever man and his dog to spend up big on equity.
Cancellation of LOC is what is happening in America ATM. Over there called HELOC Home Equity Line of Credit.
The lending criteria has definately tightened and the banks are covering their backsides after years of encouraging ever man and his dog to spend up big on equity.
hi sash
not sure what you mean about a bank not allowing you to redraw
if the term deposit is with a different lender as it has nothing to do with the first they have no control over it.
I have been recomending for some time to take out the money in the loc and take the money and deposit in a different bank in a term deposit this gives you access to the money if and when required.
yes it cost the difference betwenn the deposit interest and the loan interest but its been on the cards for some time that loc will not be there for ever and a day.
people think that because they have a loc that they can get to that money thats not the case and never was (it is only relative shortly about 10 years I think that it was available, before the loan went down and then you had to reapply, the loc as designed to save the banks money on refinancing but I digress).
a lender allowed that because it met that they could keep lending out money without having to revalue each time.
but those days are numbered
so to do it the smarter way is to take all the money that they will lend you in the loc and deposit with another bank with a term deposit and use the money that way.
all my offsets are not with the bank that I have the loan with.
so if the loans with say westpac the deposit is with bankwest.
and again you look at return at the time.
as soon as I buy, I borrow, I refinance take the max out and deposit in another bank and then wait to refinance in 5 years and do the same again.
you can get some very high term deposits upwards of 8% so the cost is small to the ability to get the money when you need it.
these will become more relevant as the belts get tighter but I have been reorganising a few people for some time on the belief that this would change.
you need to look at the niches within the bank armour, exploite them and then when you see the change comming change the plan and if possible keep as much of there money as possible and then leverage off it.
thats not advice just a view.
and novar these new changes that are not new they are just putting them back to what they used to be and do not change anything with regards to lending against equity.
equity lending has not change 1% from my view with or with out the us issue
if anything it has increased the requirement for equity lending.
the USA issue has nothing to do with lending or for that matter equity
the system is the problem but thats a different issue.
the lenders here are just changing the loan book profile and thats normal and mac is the first but won't be the last.
this is not that the roof is coming in.
one thing you have to understand is that a bank must lend.
the issue for them all, including the USA is lend on what.
and make sure that what you lend on is secure
now that in the USA is the main issue as they don't or can't be sure what they are lending on has the value that they are lending against but thats a different issue
not sure what you mean about a bank not allowing you to redraw
if the term deposit is with a different lender as it has nothing to do with the first they have no control over it.
I have been recomending for some time to take out the money in the loc and take the money and deposit in a different bank in a term deposit this gives you access to the money if and when required.
yes it cost the difference betwenn the deposit interest and the loan interest but its been on the cards for some time that loc will not be there for ever and a day.
people think that because they have a loc that they can get to that money thats not the case and never was (it is only relative shortly about 10 years I think that it was available, before the loan went down and then you had to reapply, the loc as designed to save the banks money on refinancing but I digress).
a lender allowed that because it met that they could keep lending out money without having to revalue each time.
but those days are numbered
so to do it the smarter way is to take all the money that they will lend you in the loc and deposit with another bank with a term deposit and use the money that way.
all my offsets are not with the bank that I have the loan with.
so if the loans with say westpac the deposit is with bankwest.
and again you look at return at the time.
as soon as I buy, I borrow, I refinance take the max out and deposit in another bank and then wait to refinance in 5 years and do the same again.
you can get some very high term deposits upwards of 8% so the cost is small to the ability to get the money when you need it.
these will become more relevant as the belts get tighter but I have been reorganising a few people for some time on the belief that this would change.
you need to look at the niches within the bank armour, exploite them and then when you see the change comming change the plan and if possible keep as much of there money as possible and then leverage off it.
thats not advice just a view.
and novar these new changes that are not new they are just putting them back to what they used to be and do not change anything with regards to lending against equity.
equity lending has not change 1% from my view with or with out the us issue
if anything it has increased the requirement for equity lending.
the USA issue has nothing to do with lending or for that matter equity
the system is the problem but thats a different issue.
the lenders here are just changing the loan book profile and thats normal and mac is the first but won't be the last.
this is not that the roof is coming in.
one thing you have to understand is that a bank must lend.
the issue for them all, including the USA is lend on what.
and make sure that what you lend on is secure
now that in the USA is the main issue as they don't or can't be sure what they are lending on has the value that they are lending against but thats a different issue
Not sure about redraw but HSBC is still lending on residential property, they just don't want to deal with brokers anymore so you'll have to go straight to them.
We've banked with HSBC for a number of years and have a few investment properties, plus our own, financed with them.
In January we asked for a LOC using our equity from recent valuations carried out by HSBC - no real reason for it, I just wanted a "buffer" and some cash available if we spotted a "bargain buy" this year - but they said no to the LOC - gave various reasons, none really made sense (including that they predict house prices will drop so our equity would in turn drop). Absolutely no issues we can see regarding our serviceability, LVR etc etc - basically they implied they just didn't want to do it! Needless to say we'll be looking for a new bank when we come of fixed rates at the end of the year.
In January we asked for a LOC using our equity from recent valuations carried out by HSBC - no real reason for it, I just wanted a "buffer" and some cash available if we spotted a "bargain buy" this year - but they said no to the LOC - gave various reasons, none really made sense (including that they predict house prices will drop so our equity would in turn drop). Absolutely no issues we can see regarding our serviceability, LVR etc etc - basically they implied they just didn't want to do it! Needless to say we'll be looking for a new bank when we come of fixed rates at the end of the year.
OOh yea! My broker has told me this also and.....
prepare for a .8% increase on your Lo Doc Loan.
Josco,
I am about to sign Lo Doc Loan documents with Mac. Are you sure that Mac bank are about to increase an extra .8%. Where is the evidence?
Thanks for the idea GR. I'm looking at the possibility of selling an IP soon, and was planning to pay down a LOC with the left over. Might pay to leave the LOC as is and go to a different bank with the cash like you suggested. I would be well within my banks criteria, but there's always the chance they could play funny buggers like others here have mentioned.
There may be no evidence that any increase is imminent but you run the risk when applying for low doc loans with a HIGHLY securitised lender. A company like Macq is aggressive and its front office staff, the epitomy of capitalism. I would guess they are either already in trouble or foresee a lot of trouble if they are refusing new loans. As an investor, I would be asking at least a 2-3% risk premium spread on low doc vs full doc loans that are packaged and sold to me. Now thats if I'm willing to invest my funds at all. This credit crunch has sent even traditional investment grade instruments scrambling for homes. So make your own analysis as to whether Macq low docs will hold rates at these levels. Remember that once you're in, securitised lender's exit fees are not a drop in the ocean either in the first couple of years. No expert credit analyst can safely say how far along we are in this new world. Interesting times indeed.
Interesting times indeed.....but also great times for opportunities!
I look forward to the next 6 months!
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