NAB won't call back, do I need a mortgage broker?

[RedCat]

Hi all,

I have 2 mortgages with St George. Basically a 1.3M home, split 60/40. 60% PPOR and 40% IP under my trust. The trust rents the 40% to my business and is currently cash flow neutral. I owe $880K on it so probably have access to $160K equity there. I also have $200K in available cash. I'm wanting to buy 4 properties over the next six months, then leave it for a couple of years.

I am self employed and have 08 and 09 tax returns done, showing profits of around $120K a year. I can comfortably afford to pay around $5,000/month extra on property. I have no bad debt on my records.

I've been waiting 2 weeks for an NAB business banker to call me. I bank with NAB and hold accounts with them to the value of over $1M in deposits (not all my money, cash I manage for others). You think I can get a call back??

I have met with St George and am awaiting an answer from them because I originally thought perhaps I'd get a better interest rate going direct but now I'm not so sure. Any suggestions?

 

[pickle pickle]

I believe one will always get a better deal if one goes through a mortgage broker. Mortgage broker's job is to compare loans from many institutions.

I'm not a mortgage broker but I have more faith that a mortgage broker would get a better deal than I would as they should know what is the best deal available (or close to best deal).

I'm very happy with the mortgage that we have at the moment and this was done through a mortgage broker.

I think you should call a broker. Unless you have the time to compare every loan that is available and what each lending institution looks for in an application and tailor make the application to suit each lending critera, call a broker. It's pretty much free for borrowers, so why not call one.

 

[Rolf Latham]

Hi Rae

Whatever the outcome of your chats with Stg and NAB, dont place all the loans with one lender, unless the properties you are buying are little wee 100 k places.

You will get much more favourable borrowing criteria based around your income if you spread the lender risk.

Speaking with a broker wont hurt im sure

ta
rolf

 

[Evachange]

I worked for WBC for 10 years, over that time I had 8 investment properties, first 2 or 3 loans I went through Staff lending, after that I always used a Mortgage Broker, even though I could get a discount being staff if I went direct.

Why did I use a MB, simple, better service, better understanding of what I needed, as well as having access to a number of lenders, which saved me time, otherwise I would have had to ring around, set up meetings etc etc.

Yes I know I am being biased as I am now a broker but why on earth would anyone go direct?

I am sure there are many, many stories on this forum that show why you would not go direct.

So waiting 2 weeks for the bank to call you? Sorry I would not put up with it at all, not even when I was working at WBC would I have done so.

Just my thoughts.

 

[buzzlightyear]

2 weeks....try 2 years

In 2008 when I was signing some loan docs at WBC after being organised by a MB, the bank manager (or whatever his title was) indicated that dealing with the bank would be more beneficial. I was skeptical but told him I wouldd be more than happy to listen and discuss my situation. He had indicated that I would qualify for a personal banker and that he would have him call me.

I am still waiting. (Well I'm not, but you get my drift).

 

[Evachange]

I did 10 years with WBC and listened to the propaganda machine, yea yea, Bank Managers DON”T have power, it’s not like the old day's, no matter what they say, its all just hype.

Everything in WBC was centralized in and around 1995, all state service centers also where shut down, from memory first to go was (Perth, then QLD, then Vic) and moved to NSW at Concord West, lucky for me at the time, as that is where I worked.

Same with the MPC, which for us working in WBC did not stand to Mortgage!! Ok said enough now.

I remember getting a loan with WBC through Mortgage Choice and going into the Westpac Branch to sign the loan documents, and the staff asked me why if I am staff did I go through a Broker, my response was “Better Service” did not really talk much about it after that.

Yes when I was at Westpac I was very much outspoken, but was very much respected by my manager’s.

 

[josko]

Hi Rae,

NAB have lost their personal banking service and I do believe it has fallen quite considerably in the past 36 months.

Get a broker and as Rolf mentions: Diversify your lenders.

Get a GOOD broker and someone who understands Investment Loan structure, trusts and companies.

Regards JO

 

[josko]

I did 10 years with WBC and listened to the propaganda machine, yea yea, Bank Managers DON”T have power, it’s not like the old day's, no matter what they say, its all just hype.

Everything in WBC was centralized in and around 1995, all state service centers also where shut down, from memory first to go was (Perth, then QLD, then Vic) and moved to NSW at Concord West, lucky for me at the time, as that is where I worked.

Same with the MPC, which for us working in WBC did not stand to Mortgage!! Ok said enough now.

I remember getting a loan with WBC through Mortgage Choice and going into the Westpac Branch to sign the loan documents, and the staff asked me why if I am staff did I go through a Broker, my response was “Better Service” did not really talk much about it after that.

Yes when I was at Westpac I was very much outspoken, but was very much respected by my manager’s.

Good for you evachange.

I have a friend who works for CBA. She tells me they give her a really good discount off the standard variable. 0.7%. It wasn't an appropriate time to tell her that the person that walks in off the street can get the same discount.

I have to say though, that there are some here that still protest that the banks have all of the service.

It's when your situation gets more complicated that your Personal Banker stops returning your calls.

Regards JO

 

[Evachange]

We got .70% discount as well, yep same as anyone. Long time ago you got a lot better deal for being staff, but due to the FBT they no longer offered them.

 

[HomeBuyAU]

I would suggest researching yourself, yet it can be a little more work but from my own experiences I would always go direct to a bank. When I went direct to the bank it took me a few weeks but when I went through a broker it took many many months through a painstakingly slow process, I was locked out of access to the bank as only the broker is allowed etc. I also wrote a review awhile back on my experience. There are some positives to a broker like they can be helpful with asking questions and telling you some options you have but the negatives far out weighed the positives. You will find that all the brokers here will tell you otherwise.

 

[RedCat]

Thanks all for your contributions. I'm frustratingly stuck until the ATO updates their lodgement site or some crap. My 08/09 return was lodged early Jan but is not showing up on their portal yet.

St George ARE naturally encouraging me to place huge debt with them (I intend to buy 3-4 properties in the next 6 months at 90% LVR and at about $1.6M). Assures me I'll get an amazing deal.

I will hear them out as my experience thus far has been brilliant with St George but I head all your advice and won't make any rash decisions.

You're all brilliant for inputting and helping me out with this. I'ma bit lazy when it comes to this stuff admittedly.

 

[Rolf Latham]

Hiya Rae

An important part of the decision making process with any lender is to sit down and ask them,..........this is my goal.

10 ips by 2015.

The rates on the deal , the initial LVRs are all irrelevant until you can define a way to get from you are to where you want to be.

The principle of the path determines your destination, not your or your lenders intent.

Im not havng a go, just suggesting you and your chosen lender map out how, when and where.

if you go through this process properly and be TRUE to your goal, your answer will be very obvious to you.

ta
rolf