Increase to LOC

From: Jan M


We have a loc on our house with a major bank which we would like to increase as the value has increased due to recent renovations.
There is a $300.00 fee to increase this facility which I have asked to be waived in this instance. I received a resounding negative response.
Should I just pay the fee or push a little harder? Just wondering how others would handle this situation.
Thanks
 
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Reply: 1
From: Duncan M




Rattle your sabre a little, threaten to move bank.

Duncan.

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: Increase to LOC


From: "Jan M"

We have a loc on our house with a major bank which we would like to increase
as the value has increased due to recent renovations.
There is a $300.00 fee to increase this facility which I have asked to be
waived in this instance. I received a resounding negative response.
Should I just pay the fee or push a little harder? Just wondering how others
would handle this situation.
Thanks
 
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Reply: 1.1
From: Duncan M




PS, requesting a Payout Figure on the loan is often a good way of getting
their attention.

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: RE: Increase to LOC


From: Duncan Margetts



Rattle your sabre a little, threaten to move bank.

Duncan.

-----Original Message-----
From: propertyforum Listmanager
[mailto:listmanager@bne003w.webcentral.com.au]
Sent: None
Subject: Increase to LOC


From: "Jan M"

We have a loc on our house with a major bank which we would like to increase
as the value has increased due to recent renovations.
There is a $300.00 fee to increase this facility which I have asked to be
waived in this instance. I received a resounding negative response.
Should I just pay the fee or push a little harder? Just wondering how others
would handle this situation.
Thanks
 
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Reply: 2
From: Rolf Latham


Hi Jan

Westpac and a few others dont charge for line increases/top ups.

I Have seen banks allow 500 k loans go walking for the sake of waiving an 8 a month fee. For many borrowers, it becomes a matter of principle.

Perhaps you should do a shop in any case, maybe this product no longer suits your needs.

Ta


Rolf
 
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Reply: 2.1
From: Anonymous


Hi Rolf,

1-If you apply to increase your LOC, do most banks still pull your CRA and add the new amount to it ?

2- Re Investment property loans & credit cards applications :
I have heard it is possible to save getting your CRA messed up with heaps of entry s, by getting a copy of your own CRA report and then have it signed as true and correct by a JP, and submitting this with your loan application. Then the bank in most cases will not pull your CRA to make additions. Your thoughts on this ?

Regards
Hater of CRA's
 
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Reply: 2.1.1
From: Rolf Latham


Hiya Hater of CRAA

Yes most lenders will add the entry to the CRAA for a top up.

At the end of the day the CRAA file exists mainly to avoid the lenders giving credit to bankrupts and people with otherwise bad credit histories.

Lenders have an "obligation" to others in the industry to esnure that enquiries for finance are lodged on the file.

If you have lots and lots of enquiries and they can all be explained then most lenders will not care under most lending criteria.

As for getting a CRAA file signed as a true and correct copy, unless the CRAA is 2 hours old at the time of the new application the the lender will say go away. In most cases the entry is automated on the lending scoring system anyway.

CRAA files may be perceived as a privacy breach by some, but they save us all money in that the lenders can properly assess who or whom may not be a bad credit risk. Bad debts are reflected in the cost of money.

Ta

Rolf
 
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Reply: 2.2
From: Khurram Saeed


I agree with Rolf, if you were directly dealing with the "owner" of the bank, whose bottom line is affected by you leaving...then maybe threatning to leave and go to another bank might work...but in this case the bank employees could not care.

And if anything, you will be left with paying re-financing fees and what have you...and they could take a long time before they let your mortgage go.

So i suggest pay them the $300....
Khurram
 
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Reply: 2.2.1
From: .watto .


Hi Jan,

I agree with whatever Rolf says...;)

If you can get extra equity to the tune of 10's of thousands of dollars then $300 bucks is a cheap premium to pay....

Banks don't really give a toss if you walk or stay, same as real estate agents these are boom times and there are plenty of prospects lining up to loan or buy...


Cheers
Watto
Melb Freestyler
 
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Reply: 2.2.1.1
From: Rolf Latham


Ok Watto

Take your Chequw book

Make a cheque out to Rolf for $AUD 100 000 sign date and place in express post envelope!

ta

Rolf
 
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Reply: 2.2.1.1.1
From: .watto .


Except that....;))


Cheers
Watto
Melb Freestyler
 
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Reply: 2.2.1.1.1.1
From: Joe D


Jan M
If you only have single dealing with said bank then you have little negotiating power and will ultimately pay costs or need to change lender to get better deal. If, however, you have intentions on continuing business with this institution in the form of additional loans etc, there is nothing stopping you requesting that this cost be offset against some future cost for future business with this bank.
Everything is negotiable, though perhaps you are talking to the wrong person /level within the bank.

Joe D
 
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