Haven't been on here for a long while, investing took a bank seat while I got through the ordeal of owner building my PPOR. Now I need some finance to repay a private debt and start moving forward.
Saw and heard issues with banks lending to OB'ers so I sourced the money required for my construction and part of the land privately. The aim was that once it was all said and done, having clear title on a property valued over $600k and asking for an LVR of under 60% would be an easy feat to achieve. Well I was wrong!
With the loan, ~50% is to repay the construction debt, 25% is for personal spending/debt and the remainder is to sit unused in offset/redraw/whatever to be used as a deposit on an investment should the opportunity present itself thus needing either offset or redraw facilities. Not fussed on either, I'll work with whatever is available.
I've been told that the bank polices have tightened in recent months and they don't like the idea of handing over money for this type of scenario. Aussie is happy to do it but I don't feel they are that competitive (6.61% but upfront and monthly fees) and maybe Adelaide Bank but even less competitive. My queries with the NAB indicated they'd require a stat dec to say where the money was going but will only cover the 50% part for construction and nothing else.
The other option is a LoC which will be no questions asked but I'd be paying slightly higher rates. Best one I can find is the CBA one with the wealth pack to bring the rate down to 6.86% after the $350 yearly fee. If there is another LoC with a better deal, that'd be fine. I am disciplined enough to use one and have done so in the past without issue.
Is anyone able to offer any advice on where to go?
Saw and heard issues with banks lending to OB'ers so I sourced the money required for my construction and part of the land privately. The aim was that once it was all said and done, having clear title on a property valued over $600k and asking for an LVR of under 60% would be an easy feat to achieve. Well I was wrong!
With the loan, ~50% is to repay the construction debt, 25% is for personal spending/debt and the remainder is to sit unused in offset/redraw/whatever to be used as a deposit on an investment should the opportunity present itself thus needing either offset or redraw facilities. Not fussed on either, I'll work with whatever is available.
I've been told that the bank polices have tightened in recent months and they don't like the idea of handing over money for this type of scenario. Aussie is happy to do it but I don't feel they are that competitive (6.61% but upfront and monthly fees) and maybe Adelaide Bank but even less competitive. My queries with the NAB indicated they'd require a stat dec to say where the money was going but will only cover the 50% part for construction and nothing else.
The other option is a LoC which will be no questions asked but I'd be paying slightly higher rates. Best one I can find is the CBA one with the wealth pack to bring the rate down to 6.86% after the $350 yearly fee. If there is another LoC with a better deal, that'd be fine. I am disciplined enough to use one and have done so in the past without issue.
Is anyone able to offer any advice on where to go?
