property loans through one bank

B

Bushranger

I bought my first property about a year ago with a 20% deposit. I am about to buy a second one, again with a 20% cash deposit from the same bank.

It seems like a good deal at face value. Its a portfolio package so I get almost no application fees and a discounted interest rate.

Im just curious about what are other people's opinions and experiences are of building a property portfolio via the same bank. Positive or negative.
 
It all depends on numourous factors and whose Pro package we are referring to.

Also is there a reason why you dont want to take the loan over 80% (other than the obvious LMI cost) to enable you maybe to put 10% deposit down on 2 properties spreading your risk even further.
 
007,
Do you not think it prudent to play on the safe side of the LVR fence in present times or are you suggesting business as usual?
 
I think it all depends on a number of factors.

If i was worried about my employment position or future prospects then sure i would be reviewing my overall borrowing strategy but if you think employment will continue and the you are looking at buying is areas is strong why would you not take out a 90% LVR and stick 10% in an offset account anyway.

If i was highly levaraged and relied upon rent or share dividend income then maybe my philsophy would be different to someone who is on a PAYG job.

The variables are too many to have 1 standard answer.

On a personal note i could live off rental income for ever and a day but of course my lvr is almost single figures so a lot different to advice i might give a client.

Certainly not seeing any slow down at all in investor activity.
 
Last edited:
Bushranger said:
I bought my first property about a year ago with a 20% deposit. I am about to buy a second one, again with a 20% cash deposit from the same bank.

It seems like a good deal at face value. Its a portfolio package so I get almost no application fees and a discounted interest rate.

Im just curious about what are other people's opinions and experiences are of building a property portfolio via the same bank. Positive or negative.
Click to expand...

Are you based/living in London?

If so, you are classified as non resident then max LVR is 80% with most banks

If you're happy with current banks service, rates and products why not continue the relationship
 
Maybe most but not all

If so, you are classified as non resident then max LVR is 80% with most banks

We do a fair amount of Expat business especially out of the UK and have never had a problem in getting more than 80% LVR hence i suggested the 90% LVR might be an option to follow with Bushranger.
 
I could probably get the loan with a smaller deposit, but 20% is what I am comfortable with. :)

The Professional package is with St George. No problems so far. :D

I dont live in London anymore. I live in Australia, just forgot to update my profile.

I attended a free seminar recently that was arranged by a big developer on the sunshine coast. Lots of different speakers on different topics, although slightly geared towards why buying into the aforementioned development would be a good idea (Im buying elsewhere BTW). One of the speakers was some dude from a financial/mortgage advice firm and one of the things that he said was that he always advised his clients to seperate their loans through different lenders. I didn't quite understand his logic. But he said something along the lines of......if you use the one lender for all your loans then you basically minimise the amount of money you can borrow (..in the long term?) Im not sure how he came to this conclusion, but the phrase "cross-collateralisation" came up. :confused:

Im not cross-collateralised BTW.
 
Hi Bush

If you are on the Advantage Professional Package with The Dragon hate to say you will be cross collateralised as it is a condition of the loan.

One of the requirements of the package are that where the loan involves more than 1 security and all properties are linked to all loans .

They dont mention it anywhere but the small print of the Letter of offer and loan documents.

We used to volume business with SGB but now would only use them as a lender of last resort because of this.
 
Hiya Bush

The presenter was likely alluding to the spreading the exposure makes it easier to borrow, thus the total aggregate exposure is likely to be better.

Id agree with that. Using the right lender at the right time can really improve borrowing capacity, if that is of importance

ta
rolf
 
Qlds007 said:
Hi Bush

If you are on the Advantage Professional Package with The Dragon hate to say you will be cross collateralised as it is a condition of the loan.

One of the requirements of the package are that where the loan involves more than 1 security and all properties are linked to all loans .

They dont mention it anywhere but the small print of the Letter of offer and loan documents.

We used to volume business with SGB but now would only use them as a lender of last resort because of this.
Click to expand...

Spot on Richard.


I'm assuming you're Victorian by your title Bushranger. In case you missed it, the Vics gave those banana benders a belting in the shield final :D
 
Yes but the toss and the fact it took Vic 3 1/2 days to score it probably helped.

Had things been at the Gabba would have been totally different (We could have had all 5 days washed out by rain lol).
 
Qlds007 said:
Cricket jaycee.

Admitedly not as exciting as football but something Qld can play.
Click to expand...

:D What's that ? :D :p only joking, (have made jokes like that in the past & not followed up with only joking straight away & got barraged with insults about soccer and the supposed types who play it before !)
 
Last edited:
St George

Nope im Qld through and through.

St George told me I would not be cross-collateralised.

Im not sure that it matters that much anyway?!
 
I was cross collaterwhatisnamed with CBA. Got out of it as simply as signing something, don't know how much more implicatoins there may be sometimes however.
 
You must log in or register to reply here.

Similar threads

B
Best balance between Line of Credit and Home Loan
Replies
7
Views
2K
Bipolar Bear
B
T
Applying for new loan whilst a IP is vacant
Replies
6
Views
1K
The Dark Knight
T
H
What's the best fixed rate currently available
Replies
12
Views
3K
cuteduck
cuteduck
H
Advice please - Finance dramas and options?
Replies
9
Views
2K
hudbry
H
S
Can I buy 3 properties with 350k?
Replies
16
Views
3K
westminster
westminster
Back
Top