Hi all
Corsa has a good point here. Just one of the reasons we suggest clients lock in existing values.
ta
rolf
Corsa has a good point here. Just one of the reasons we suggest clients lock in existing values.
ta
rolf
Trying to uncross with the NAB
- Thread starter stargazer
- Start date
Hi all
That was my thoughts Corsa. Is this just a symptom of what is to come.
What is the point of changing institutions if the others are going to follow suit and reduce LVRs.
May be the borrowing capacities of different lenders may be a consideration.
Then again i have been told that the NAB is probably the most conservative. You wouldn't think it on some of the business decisions they have made in recent times.
The NAB is definitely steadfast that properties must be crossed.
regards
BC
That was my thoughts Corsa. Is this just a symptom of what is to come.
What is the point of changing institutions if the others are going to follow suit and reduce LVRs.
May be the borrowing capacities of different lenders may be a consideration.
Then again i have been told that the NAB is probably the most conservative. You wouldn't think it on some of the business decisions they have made in recent times.
The NAB is definitely steadfast that properties must be crossed.
regards
BC
Hello Corsa,
Did you know that when a lender 'sizes you up' for a loan, you have two 'Lending Hurdles' to pass. #1 is the LVR (you know what this is) this is the banks level of risk in a certain postcode, or type of loan. So if the NAB is reducing their LVR, ther emight be a reason such as Inner City apartments have a lower LVR than a house in the suburbs. Or the lender is 'sizing you up' for the type of loan you seek. I don't deal with the NAB, but I have heard many stories from the 'Big Five' lenders and what they work at getting away with. Once the LVR hurdle is defined, then you have to jump thru a burning hoop of fire - The Serviceability ratio. different loans have different criteria, such as 'Lo Doc' against Fully Verified P & I loans against 100% home loans.
What I am trying to write is that you need to know what you want as i am yet to speak to anyone that is really happy with their loan (because the bank chose FOR THEM???)
Don't forget, what is the RISK in your deal, that's what you are referred to as - the next DEAL!
Hope this helps.
Derekuhb
Did you know that when a lender 'sizes you up' for a loan, you have two 'Lending Hurdles' to pass. #1 is the LVR (you know what this is) this is the banks level of risk in a certain postcode, or type of loan. So if the NAB is reducing their LVR, ther emight be a reason such as Inner City apartments have a lower LVR than a house in the suburbs. Or the lender is 'sizing you up' for the type of loan you seek. I don't deal with the NAB, but I have heard many stories from the 'Big Five' lenders and what they work at getting away with. Once the LVR hurdle is defined, then you have to jump thru a burning hoop of fire - The Serviceability ratio. different loans have different criteria, such as 'Lo Doc' against Fully Verified P & I loans against 100% home loans.
What I am trying to write is that you need to know what you want as i am yet to speak to anyone that is really happy with their loan (because the bank chose FOR THEM???)
Don't forget, what is the RISK in your deal, that's what you are referred to as - the next DEAL!
Hope this helps.
Derekuhb
Hi all
Thought i would bring to this forward and update this and also if others are still having the same experiences with the NAB.
I have finally got another lender which will give me 80% LVR on my inner city townhouse.
I rang the NAB PB and asked if the policy had changed re: Inner city she said actually i have just received a refinance letter from the other institution and have mad some enquiries but nothing has changed. Still 70% inner city.
-With that she said i will send you some documents for you to ask to discharge the property.
-Then she said oh by the way this frees up more equity in your PPOR and i would like you to be borrowed up to you maximum borrowing capacity.
My experience with NAB has been they have been steadfast. Nothing has budged them to re consider even with the knowledge they are going to lose business.
The PB i feel had tried and she said i do not necessarily agree with our policies but you do what you have to do.
cheers
BC
Thought i would bring to this forward and update this and also if others are still having the same experiences with the NAB.
I have finally got another lender which will give me 80% LVR on my inner city townhouse.
I rang the NAB PB and asked if the policy had changed re: Inner city she said actually i have just received a refinance letter from the other institution and have mad some enquiries but nothing has changed. Still 70% inner city.
-With that she said i will send you some documents for you to ask to discharge the property.
-Then she said oh by the way this frees up more equity in your PPOR and i would like you to be borrowed up to you maximum borrowing capacity.
My experience with NAB has been they have been steadfast. Nothing has budged them to re consider even with the knowledge they are going to lose business.
The PB i feel had tried and she said i do not necessarily agree with our policies but you do what you have to do.
cheers
BC
What I've found, through my own experience, and the experience of my clients, is that no bank has a terrific system in place for offering exceptional customer relationship management. There are some great individual PBs out there, and if you find one there are able to work some magic, but it's not consistent at any particular institution. I have actually found that any PB who is smart and knows how to get things done is quickly promoted away from their customers.
One trick that I have used with some success is that when I want to do something and the bank says "no", don't argue, and just call back a few minutes later. I have found that if you get a different person on the phone they are often more helpful than the first. Strange but true..........
Cheers, Medine.
One trick that I have used with some success is that when I want to do something and the bank says "no", don't argue, and just call back a few minutes later. I have found that if you get a different person on the phone they are often more helpful than the first. Strange but true..........
Cheers, Medine.
Hi Medine
That "promoted" away is in my mind a risk management tool for the lenders.
You dont want your clients to get too chummy with the PB if you are a bank.
Though some would say its sour grapes, the are some interesting mortgage frauds that I see committed are at a branch level where the branchie is under pressure for the budget of the month and lots of things get overlooked, like genuine savings records, killing of kids and $ to complete.
I know that also happens in the brokerage world, but in my experience its most common at the mortgage originator/manager level, then at branch, then brokerage level.
Id suggest thats because a broker is effectively a third party to the lender the loan book brought in is generally scrutinised much more so than at branch level.
ta
rolf
That "promoted" away is in my mind a risk management tool for the lenders.
You dont want your clients to get too chummy with the PB if you are a bank.
Though some would say its sour grapes, the are some interesting mortgage frauds that I see committed are at a branch level where the branchie is under pressure for the budget of the month and lots of things get overlooked, like genuine savings records, killing of kids and $ to complete.
I know that also happens in the brokerage world, but in my experience its most common at the mortgage originator/manager level, then at branch, then brokerage level.
Id suggest thats because a broker is effectively a third party to the lender the loan book brought in is generally scrutinised much more so than at branch level.
ta
rolf
To uncross 2 properties would be about $500.
Loan structure has no impact on borrowing capacity 99% of the time so get it cleaned up asap by a specialist.
$500!! Now I regret not getting this checked before refinance. Is this a cheap price to pay to xcoll your loan? By specialist, do you mean the NAB broker that works at NAB?
Its small fry in the big scheme of things and is a tax deductable expense.
By a specialist I mean an investment property mortgage broker. Was trying not to sound like a self promoter.
NAB brokers dont work at NAB and why would you go back to the same people that gave you a poor structure on the first place and probably dont know any better.
You can go direct as long as you know what your doing. I would even press the point that its a poor structure and there fore you are not paying any fees or you will go else where.
If you approach a broker they may suggest elswhere or take you across to NAB Broker which is akin to an internal refi (sort of).
I have more aggressive notion...................
If its your intent to grow your portfolio, then it may be worth moving from NAB altogether if possible and practical and move to a lender with a lower serviceability model while you can.
this will then allow you to use NAB when you really need their strong serviceability, rather than soaking up all their allowed exposure too early in your acquisition phase ( assuming thats where you are)
ta
rolf
If its your intent to grow your portfolio, then it may be worth moving from NAB altogether if possible and practical and move to a lender with a lower serviceability model while you can.
this will then allow you to use NAB when you really need their strong serviceability, rather than soaking up all their allowed exposure too early in your acquisition phase ( assuming thats where you are)
ta
rolf
Read through this older post with interest, I take it that a few of the things talked about back in 2004 no longer apply with NAB? ie the compulsory xcoll? I've just run into their delightful 12 month reval policy this week, I've had the property for almost 9 months (subdivision, private mortgage up til now, property value somewhere between 50k to 100k more than I paid) and discovered that they are starting the clock from this coming week not from the purchase date which is what I had initially thought they'd agreed to.
Read through this older post with interest, I take it that a few of the things talked about back in 2004 no longer apply with NAB? ie the compulsory xcoll? I've just run into their delightful 12 month reval policy this week, I've had the property for almost 9 months (subdivision, private mortgage up til now, property value somewhere between 50k to 100k more than I paid) and discovered that they are starting the clock from this coming week not from the purchase date which is what I had initially thought they'd agreed to.
Nab broker dont have such an excluson todat, though most vals do last 90 days at least depending on the LVR
ta
rolf
Tell them other banks have offered to take your loans on an uncrossed basis and ask the matter to be referred to retention. They'll let you if they think they'll lose you.
If you feel unethical doing it, then do go talk to some brokers or see some banks. If each property has sufficient equity on its own and you have reasonable borrowing capacity, it won't be hard for you to find a bank who will offer to take them on an uncrossed basis.
Break fees are not exorbitant these days. I would consider moving my loans if the bank insisted on crossing them.
If you feel unethical doing it, then do go talk to some brokers or see some banks. If each property has sufficient equity on its own and you have reasonable borrowing capacity, it won't be hard for you to find a bank who will offer to take them on an uncrossed basis.
Break fees are not exorbitant these days. I would consider moving my loans if the bank insisted on crossing them.
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