Tapping into equity

Any feedback from Brokers or investors with recent experience....


I understand that banks are starting to give their customers the cold shoulder regarding DOING A REDRAW FOR PERSONAL/OTHER INVESTMENT SPENDING.
e.g. in 2006 I was approved for a loan that took me up to 67% LVR on a commercial loan.

If I was to apply for a loan now to increase this amount (get a valuation done etc), do you think I should be able to draw a loan for up to 70% of the CURRENT value, which is greater than in 2006.

It is a commercial loan, and we were able to go 70% LVR at the outset.
:)
I want the money for personal/other investment purposes.
 
Not sure about commercial Giddo, however "cash out" from resi for no specified purpose has some challenges. :( Intending renovations to one's portfolio to enhance yield/return is received with..... "show us some quotes" .

Wanting to use as "deposits for future IP's" has a similar rebuttal.........."show us a contract". :cool:

Not impossible, however one needs to plug away and find a lender that accepts intended use............that said borrower then has a change of mind due to altered investment strategy and uses funds to stock-pile ca$h in offsets like some others are doing. I like the idea of being Player Bank and being able to pounce on an opportunity with ready cash. One can then take time to refinance the acquisition later using it as security for its own loan and retreiving the initial funds to once again park in the offset and recycle. ;)

Perhaps the brokers can assist with your commercial loan bias.
 
Hi Giddo!

After hearing most people, including brokers tell me that cash out was very hard at the moment, I decided to approach my lender personally.
I called the home loan centre, pushed 2 for 'top up's'
Spoke to a man there, he asked me how much I thought this property was worth, I told him, he asked me how much I wanted, faxed me 2 papers, I signed them and faxed them back with the date I wanted the money, and two days later, there it was in my account. No worries whatsoever.

When asked what I intended to use these funds for I was kinda put on the spot and just was honest. I said 'I'm not 100% sure.. I might be looking at purchasing another property, reno's, or perhaps even a new car!' No worries.

I went to 80% by the way. No fees to speak of for doing so from this lender.
 
It is true that banks are indeed getting tighter. I know that for low-doc loans you can no longer increase your LVR - you have to jump through many hoops to actually get any deal done.
 
Hi Giddo!

After hearing most people, including brokers tell me that cash out was very hard at the moment, I decided to approach my lender personally.
I called the home loan centre, pushed 2 for 'top up's'
Spoke to a man there, he asked me how much I thought this property was worth, I told him, he asked me how much I wanted, faxed me 2 papers, I signed them and faxed them back with the date I wanted the money, and two days later, there it was in my account. No worries whatsoever.

When asked what I intended to use these funds for I was kinda put on the spot and just was honest. I said 'I'm not 100% sure.. I might be looking at purchasing another property, reno's, or perhaps even a new car!' No worries.

I went to 80% by the way. No fees to speak of for doing so from this lender.

And then you woke up and the alarm was going off .. right?
 
G'day All,

W2BW......do you mind if I ask which lender you you actioned this with please? It seems way too easy in current fianancial climate.

I am in discussion with my broker now with a view to trying to rearrange 3 x loans with Westpac to set up an interest capitalisation regime and she is saying that it could be very difficult to get things over the line (especially if we tell them the truth!!). Her view is that by me wanting to revalue 2 x IPs and dump excess funds in LOCs and set about paying down our PPOR with normal PAYG & rental income funds, Westpac will just say no! Yet if we come up with some **** & bull story we might just get the approval we need.

I'd rather tell them straight up what I want to do (unless anyone else has an approach which might be a bit "rubbery" but may be more palatable to Westpac).

What ever happened to easy money?

Ian.
 
Hi Rob, no..

I believe you had troubles with this lender last time we spoke, I had none whatsoever. Not sure why, could be LVR or something, not sure.
Either way, looking forward to sharing some of it with you in August, if you know what I mean ;)

PM me me for details if you still require them.

And then you woke up and the alarm was going off .. right?
 
PM sent, I won't share details here.
Cheers!

G'day All,

W2BW......do you mind if I ask which lender you you actioned this with please? It seems way too easy in current fianancial climate.

I am in discussion with my broker now with a view to trying to rearrange 3 x loans with Westpac to set up an interest capitalisation regime and she is saying that it could be very difficult to get things over the line (especially if we tell them the truth!!). Her view is that by me wanting to revalue 2 x IPs and dump excess funds in LOCs and set about paying down our PPOR with normal PAYG & rental income funds, Westpac will just say no! Yet if we come up with some **** & bull story we might just get the approval we need.

I'd rather tell them straight up what I want to do (unless anyone else has an approach which might be a bit "rubbery" but may be more palatable to Westpac).

What ever happened to easy money?

Ian.
 
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