One bank or multiple banks?

[srini]

Here is the current situation:

IP #1 $204k (Macquarie, considering refinancing with ING)
IP #2 $288k (ANZ)
PPOR #1 427k (ANZ)
Land + Construction #1 approx. $700k (haven't decided on bank yet)

Question is should we have all the loans with one bank?

Pros:
1. Better bargaining power to get better rates
2. Easier to administer/deal with (might get a personal banker)

Cons:
1. Bank thinks they own us
2. All eggs in one basket - if chosen bank increases rates more than others, we get shafted

What are your experiences? What would you recommend?

Thanks
Srini

 

[Bradsdad]

Here is the current situation:

IP #1 $204k (Macquarie, considering refinancing with ING)
IP #2 $288k (ANZ)
PPOR #1 427k (ANZ)
Land + Construction #1 approx. $700k (haven't decided on bank yet)

Question is should we have all the loans with one bank?

Pros:
1. Better bargaining power to get better rates
2. Easier to administer/deal with (might get a personal banker)

Cons:
1. Bank thinks they own us
2. All eggs in one basket - if chosen bank increases rates more than others, we get shafted

What are your experiences? What would you recommend?

Thanks
Srini

Pros
1. I'm guessing you're on around 6.46% with ANZ. Additional borrowings would most likely put you on around 6.26%.
2. Unlikely to get PB and quite honestly PB's, managers etc change every year or 2 anyway and then you have to toilet train them again.

Cons

1. Ummmm they own the property . If not x-colled then you still hold most of the power.
2. By not crossing you can always move part/all away should this occur. With refinance & DEF fees though you may find that by the time you recover the costs your current lender maybe competitive again. By spreading the eggs you minimise the risk but are you worried about the lender (say ANZ) increasing rates independantly over and above the extra pricing you may achieve?

Servicing is another story and when you've hit the wall with one particular lender you'll need to approach another.



Regards
Steve

 

[Bigtone]

Here is the current situation:

IP #1 $204k (Macquarie, considering refinancing with ING)
IP #2 $288k (ANZ)
PPOR #1 427k (ANZ)
Land + Construction #1 approx. $700k (haven't decided on bank yet)

Question is should we have all the loans with one bank?

Pros:
1. Better bargaining power to get better rates
2. Easier to administer/deal with (might get a personal banker)

Cons:
1. Bank thinks they own us
2. All eggs in one basket - if chosen bank increases rates more than others, we get shafted

What are your experiences? What would you recommend?

Thanks
Srini

multiple lenders for sure

if u what to be a serious investor forget about interest rates as a factor
it is the ability to keep moving that matters, i don't know any investors with 10+ plus properties that care what the rate and costs are as loan as they are ballpark competitive

the risk with being with one bank is not rate rises but restricting polices and changes lending criteria

spread the love around

 

[Bradsdad]

multiple lenders for sure

if u what to be a serious investor forget about interest rates as a factor
it is the ability to keep moving that matters, i don't know any investors with 10+ plus properties that care what the rate and costs are as loan as they are ballpark competitive

the risk with being with one bank is not rate rises but restricting polices and changes lending criteria

spread the love around

10+ would be a struggle with any one lender and risky but as this is no 4 and another lender is in play already there may still be room to move with ANZ. After that looking elsewhere would certainly be an option. I guess a lot would depend on current LVR's and future goals.
I would doubt that may 10+ investors would be using 10+ different lenders but instead spreading it among 2,3, or 4.