Which Bank do I go with, please help!

[Mick C]

ING and Citi

If you have a lot of time, and much hair left, then these guys are an option, I can think of better ways to inflict self harm.

Just dont ever go back and try and do a top up.

Industry worst pain

We will not use ING in our office, because the longer term issues it creates for our clients

if its a set and forget then its possibly ok.

ta

rolf

ahha that's true- they were a pain in the *** for top up! it's like doing a WHOLE new app at times...

But in their defense; ING at least are improving and have a dedicated VCAT team for all variation; currently go one in progress; top up finalized in 13 days ( yes longer then another lenders- but they are improving).

Also with Citibank im not longer getting the massive wait that we normally experience 2 years ago + less paper work; it's been quite quick for some reason....maybe a lot of brokers have ditch Citibank so they get less calls? all better for me

Regards
Michael

 

[Belbo]

I have tried going to Mortgage Choice, then direct to banks, then back to Mortgage Choice (oh no!) , then back to the bank (aarghh, the pain!), and then finally got hooked up with a brilliant broker in WA. [Happy to share if you'd like to PM me, K.]

But what I really want to say is this: Forget banks, and find the right broker!

As Rolf endlessky keeps saying, it's not a case of bad banks or bad brokers, it's just a case of finding individual people who are just very good at their jobs.

Now, good brokers are well-connected to lots and lots of good bankers (you following me, here?), so a good broker is the ultimate trump card.

I'm living proof. 12 months ago raising $400K direct from a bank took 6 months of seriously strenuous effort. Following that, raising $1.5M through a decent broker using the same banks was a downright doddle (at least, from my end).

The right broker will make the right case for your particular circumstances to the right banker, and thereby get you the deal you need (as PT Bear most correctly observed).

Will it be the cheapest possible on the whole market? I'd submit you don't have enough breaths left in you to ever know, or to actually care.

Will the broker get paid for their services? Well, why the heck not? (It's not really coming out of your pocket, unless you think there's actually no competition going on in bank lending whatsoever.)

And will it get you where you want to be in the long term, owning a whole bevy of real estate, and not just an endangered bend on a levy bank? Well, ask yourself, how many poor people employ professional services, and how many rich people do?

Honestly, just do yourself a great big favour and give going direct to the banks the flick. It almost offends me that brokers contributing to this thread seem willing to explain their worth. Do you really think they'd bother if it was just about easy money to them?

No. Good brokers live by their business wits just as much as any property investor or other professional business person does, and I for one appreciate that they deserve to become very successful property investors themselves too for their unique professional competencies.

Disclosure: I've had no dealings whatsoever with either Rolf or PT Bear, so this post stands completely neutral as to the suitability of their individual services for anybody.

 

[kereninotech]

Thanks all , great feedback again.

To tell you the truth I don’t have any problems going to a Broker, in fact my PPOR finance was done by a broker! He was very helpful and professional at what he does, he showed me a list of banks with different loan options and features for every loan the banks offered and I decided to go with CBA and his recommendation was also CBA. He also showed me what commissions he was getting, from memory I didn’t care much i was more focused on the finance itself. Looking back to it now i am still happy with the loan even though the interest rate increased a lot. Sadly he is no longer working on the industry, from my understanding from him it is not an easy Job to be a good broker when dealing with Banks and meet all demands of clients.

First I looked for a local Broker and discussed my requirement for my IP (about 7 months ago). He asked me basic questions and we entered the figures in a software wizard and I had no choice but CBA. He told me other Banks will not lend me. I sent an email and called to review my requirements and figures again but nor response. It didn’t feel right so I had to find another Broker or Call the Banks. I did both.

Then talked to a broker who works in the same company as my previous broker used to work and a local Westpac Bank Manager.

This Broker was good, he provided with a list of options and from the figures I showed him, I can borrow from almost every bank, with the same figures I provided to the first broker. Issue I had here was the structure of the loan, it was pre much left to me to decide how to structure it, and the options didn’t seem attractive in all of them I have to pay LMI of ($8K to $9K). I didn’t see the full picture of the loan structure got confused more. He is very nice guy, I don’t mind working with him if I know my stuff (which I am getting better at every time I read posts in this forum and read books).

The Local Westpac bank Manager was from Mars… I mean I never seen a person like him. He told me I have to bring the CBA loan to Westpac or I have no business with Westpac, simple as that. Wasted my time and left the Bank.

Recently called CBA and Westpac (Direct Banking) and I was told i can borrow up to $500K from the figures I showed them. My first post briefly shows the options provided to me by the Banks, i was told by the person I was speaking too, asking for the loan options they have will not result in a credit enquiry. The Westpac option is very similar to the option presented by the second broker.

From these experiences personally I believe it depends to who you meet. I realized now it is not easy to find a good broker. Well I will probably be going back to the second broker and work on the loan structure again and see what other Banks are offering.

Thanks
Kereninotech

 

[kereninotech]

HI kereninotech,

From the quote given of 7,000 LMI- im guessing your LVR is around 85-88?

Regards
Michael

I was told by CBA 84.20% i don't understand how they came up with it. Seems to me they are using the real loan balance and not counting the extra money i was puting, it shows as a redraw. This part is what i don't get from the e-mail they have sent me.

If you had no redraw, we would be able to get a loan ratio of 77.1%
Ie. $260,000 + $370,000 / $460,000 + $357,000 = 77.1%
Or you can restructure it another way if you wanted to keep redraw.

I don't get this????

Thanks
kereninotech

 

[Rolf Latham]

I was told by CBA 84.20% i don't understand how they came up with it. Seems to me they are using the real loan balance and not counting the extra money i was puting, it shows as a redraw. This part is what i don't get from the e-mail they have sent me.



I don't get this????

Thanks
kereninotech

Hello K

I get it, the folks you are dealing with dont get it

The are likely looking to reduce the loan limit on the loan with the redraw back to the outstanding amount, which for risk management purposes is the last thing you might want.


Have you defined ( or any broker or lender) helped you define what your risk profile is ? How much cash or equity might be a good thing to hold back ?

Rereading this thread, I see a lot of focus on LMI savings, rate costs , cross this not cross that, etc blah blah, even on the advice here ( based on the limited data thats all we can do for you here so Im not being critical of advice here in any way !).


Based on all of this, you arent going to get any less confused real soon I feel , and all the whiz bank software that the Notebook Jockeys use wont help you ( nor them) understand what you really need. What you need, and what they think you need, and what your actual needs are may be very different.

Work out the END GAME, what do you want this to do for you and WHY, now andin the foreseeable future what your RISKS are, and GAINS are, then derive a structure that suits those DEFINED things, then look for a lender(s) that offers the structure and then see if the product fits the structure.

Thats our general approach, and the approach of many solution oriented brokers. It seems so far, the brokers and lenders you have spoken with so far are PRODUCT and transaction focussed, and thats possibly where your confusion comes from.

Get someone to help you with what you want to achieve around the goals and risks above and I believe much of your fog will ift.

Broking and structuring isnt rocket science, but black box technology it aint either.


ta
rolf

 

[Kanemicm]

Which bank

You could also consider NAB, I have a number of clients securing a rate of 6.85% via their choice package.

 

[kereninotech]

Hello K

I get it, the folks you are dealing with dont get it

The are likely looking to reduce the loan limit on the loan with the redraw back to the outstanding amount, which for risk management purposes is the last thing you might want.


Have you defined ( or any broker or lender) helped you define what your risk profile is ? How much cash or equity might be a good thing to hold back ?

Rereading this thread, I see a lot of focus on LMI savings, rate costs , cross this not cross that, etc blah blah, even on the advice here ( based on the limited data thats all we can do for you here so Im not being critical of advice here in any way !).


Based on all of this, you arent going to get any less confused real soon I feel , and all the whiz bank software that the Notebook Jockeys use wont help you ( nor them) understand what you really need. What you need, and what they think you need, and what your actual needs are may be very different.

Work out the END GAME, what do you want this to do for you and WHY, now andin the foreseeable future what your RISKS are, and GAINS are, then derive a structure that suits those DEFINED things, then look for a lender(s) that offers the structure and then see if the product fits the structure.

Thats our general approach, and the approach of many solution oriented brokers. It seems so far, the brokers and lenders you have spoken with so far are PRODUCT and transaction focussed, and thats possibly where your confusion comes from.

Get someone to help you with what you want to achieve around the goals and risks above and I believe much of your fog will ift.

Broking and structuring isnt rocket science, but black box technology it aint either.


ta
rolf

Hi Rolf,

Very good points you have there, I have done my own risk assessment (based on my understanding so far), but no other broker or lender mentioned to me a “risk profile“.

In the other hand i know exactly what my goal is. It is very simple and no confusion. The issue that i seem to be having is identifying the road i need to take to get to the final destination (my goal), as you might have noticed it is confusing and not clear for me at the moment.


Thanks
Kereninotech