second morgage request

[im sparticus]

Today I found out that after a little over a month after I and CBA submitted the request of dragging their *** loosing paper work doin valuations personal banker going on annual leave and fill-ins not filling in and god knows what else hapends at the NAB head office they finally decided not to allow CBA to go second morgage on my homeloan with them, and there reason:

"Unfortunately I will not have the backing of credit to consent to a 2nd mortgage.

This is due to limited equity being held by security and loans we currently have, I can relay this to CBA or leave it to yourself."

WTF can someone translate this for me am i missing something??, I was expecting something like "sure mate we have first dibs on the money if CBA wants to use whats left as security they can be my guest, all the best".

Do you think all this has to do with nabs stupid breakup campain?

 

[Mick C]

It happens....1st mortgage has the right of way.

Whats the current LVR and new LVR amount?
Value of home and current loan and new loan amount for the 2nd mortgage?


Regards
Michael

 

[im sparticus]

lvr 60%, new loan same size as first. valuation or lmi not required by cba.

 

[Mick C]

Umm i can't see any problem with the 2nd mortgage...

Could you service the 2nd loan easily? or is it a tight serviceability....

*if serviceability is good, and LVR of 60% then i would write back to NAB for a call back and to explain the reason behind the rejection and to re-consider with a more senior credit team member- if your going via a broker; get the broker to do it.


Regards
Michael

 

[im sparticus]

servicability wasnt an issue with cba when i made the app and wasnt part of nabs reasoning. to be honest with the amount of time they have wasted on this there is no way ill be trying to get another response from them much easier to just refi loans wont be crossed etc. I sometime wonder weather the big banks are all in on turning us over to generate fees etc.

 

[Spectre]

If servicing isnt an issue then why not cash out with NAB and increase the cba loan to 80%. no x-coll.

I wouldnt see nab just saying no without a reason to base it on though.

Is it a low doc?

 

[Peter_Tersteeg]

I second Spectre's comment. Most of the reasons people require a second mortgage can be solved with cash out in addition to the existing mortgage. You may have to get a bit creative with the reason why you want cash out, but it can be done.

There's very few circumstances where NAB will knock back a deal but CBA can do it.

 

[im sparticus]

Well im glad you guys are just as puzzled as i am. Im even more puzzled by there reasoning anyone wanna chime in on what there response actually means. not to mention over a month to come to this conclusion.

"Unfortunately I will not have the backing of credit to consent to a 2nd mortgage.

$$$$$This is due to limited equity being held by security and loans we currently have$$$$$, I can relay this to CBA or leave it to yourself."

 

[im sparticus]

If servicing isnt an issue then why not cash out with NAB and increase the cba loan to 80%. no x-coll.

I wouldnt see nab just saying no without a reason to base it on though.

Is it a low doc?

Because they took 1 month to make this decision and it doesnt make any sense, settlment will be here before I see any money from them, CBA already have the wheels in motion and are doing a great job of keeping ontop of it. plus works out cheaper doing it all with cba on a package (rates%) + $1200 refi + $100 open an account (have actually already recieved the $100 2 weeks ago)

Not lo-doc have been gainfully employed by a company in the asx50 for over 10years

 

[Spectre]

Also as a note - you might want to confirm that with CBA they sent the request off a few weeks ago.

With the 2nd M's we've run to CBA they've always been fairly slow at sending it off until the last minute for some reason and we have to chase them to do it. Probably attempts to keep the business or something. I dunno.

 

[im sparticus]

Also as a note - you might want to confirm that with CBA they sent the request off a few weeks ago.

With the 2nd M's we've run to CBA they've always been fairly slow at sending it off until the last minute for some reason and we have to chase them to do it. Probably attempts to keep the business or something. I dunno.

they sent one and gave me another one to send which i did via internal at a NAB branch.

 

[Peter_Tersteeg]

Can you give us an ideal of the overall deal you're trying to acheive? 2nd mortgages are pretty rare, there's often another way to do things which avoids it already.

 

[im sparticus]

it seemed the simplest cheapest easiest option at the time. what are your methods of avoiding it considering the difficulties ive had with nab?

 

[Marty McDonald]

Sounds like nab have just got the *****! Doesn't sound like you have any business loans?

I haved vowed to never even attempt second mortgages unless only option in the future. It's too hard to get the two lenders talking.

Curious why second mortgage? Could you have just topped up the nab loan at 60% lvr I thought they would be receptive to that.

 

[im sparticus]

Thats what i was thinking but have no idea why, it must have to do with there breakup campain so stupid and unprofessional, though i do have accounts with the bussiness lending dept and no bussiness loans so maybe they are trying to move me on.

Last time i delt with NAB was to setup a LOC to capitalise some interest and save my rental income for some education and other large seen and unseen future non deductable expenses (build a bigger buffer), the guy i was dealing with said he had never heard of such a thing and it was impossible anyway as they could only make out cheques for the loc and that they wouldnt write out cheques to themselves for interest payments (I had applied for the home equity line of credit) I asked him if there were any other products that didnt require the writing of a check from a banker and were abit more flexable to access the money, he said no we are one of the more conservative banks.

This time I wanted a bank that could make this happen should i need to in the future (or at the very least provide me with funds that are a little easier to access than applying for a bank cheque) hence CBA (nab does actually have a product though there employees arnt aware of it how it works or how it can benifit you so its usless). as a property investor so far CBA just seem to know what they are on about talk your language and are on your wave length. After this second morgage BS I know NAB are capable of just about anything accept helping me they havnt even asked if there was something they could help me with ie "sorry sir we cant allow cba to go second morgage but maybe we can help you with the finance. we after all are a bank and in the bussiness of lending money".

On another note has anyone noticed the replys to the online banking messagers names seem bogus. they even got my bankers name and sex wrong calling him a her and refering to him as "billie-jean" got his contact number correct not that it was any help he never answers it.

 

[Spectre]

On another note has anyone noticed the replys to the online banking messagers names seem bogus. they even got my bankers name and sex wrong calling him a her and refering to him as "billie-jean" got his contact number correct not that it was any help he never answers it.

Back in the day... when I used to work for State Bank of NSW the collections dept signed letters Colin Tower. People who would ring for him and ask for Colin were doing a code word to the person answering the phone as it was used on collections letters.

Not many figured out it was a spin on Colonial Tower.

 

[im sparticus]

I sent NAB "notice to dicharge" paperwork mid april and they have now said earliest they can book settlement for the refinance with cba is 25th may, i settle with the new place 30th may which CBA have assured me is achievable lucky i had a 90 day settlement or ide be in real trouble.

do the sort of timefames NAB are giving sound reasonable??

 

[Mick C]

I sent NAB "notice to dicharge" paperwork mid april and they have now said earliest they can book settlement for the refinance with cba is 25th may, i settle with the new place 30th may which CBA have assured me is achievable lucky i had a 90 day settlement or ide be in real trouble.

do the sort of timefames NAB are giving sound reasonable??

Im guessing you tick the "fastref" box- i think they charge $50-70 for this fastref system..if that's the case then the time-frame is tight, but fine and do-able.

Regards
Michael

 

[Spectre]

nab's usual line is 21 days for a refinance.