Ask and you shall receive (maybe)

Discussion in 'Loans & Mortgage Brokers' started by Greyghost, 18th Nov, 2015.

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  1. tobe

    tobe Well-Known Member

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    no, but some wont do it within 6 months, and valuers will get jack of it pretty quick.
     
  2. Tim86

    Tim86 Well-Known Member

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    I just shifted from westpac ppor loan at 4.5% or thereabouts to bank of queensland at 3.99% and looking to move an investment property over for a variable rate of 3.99 or a 3 year fixed rate of 3.94. I think ill do the fixed rate because i cant see it getting much better than that for investor loans any time soon.

    The big 4 are just screwing investors over like crazy right now. High 4's when there are others charging high 3's.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    BoQ is a good rate, just gotta be aware they x-coll by policy and have about a 5 week turn around for Refi's at the moment! :eek:
     
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  4. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Is that 3.99% BoQ rate before their recent 18 basis point increase?
     
  5. blackenator

    blackenator Well-Known Member

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    I just spoke to my broker and said I wouldn't get a lower interest rate because I have a high LVR? My interests rate are all close to 5% , my loans are with CBA, Anyone had any experience with CBA at high LVR's and getting a discount?
     
  6. Redom

    Redom Mortgage Broker Business Plus Member

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    Its much easier to get discounting with CBA when theres new lending on the table. Comes back down to the 'how you ask' and 'when you ask' to get the best results with CBA.

    Their pretty willing to move on rates across your portfolio then.

    They usually come out with a flat reject if there has been:
    1. No New lending
    2. Pricing has already been applied in the last 12 months.

    CBA do price on LVR though - so it can be one reason why your discount is lower.

    If you have different rates on your loans, you may be able to get your package discount applied evenly (best case scenario most likely).

    Cheers,
    Redom
     
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  7. Tim86

    Tim86 Well-Known Member

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    No not before. It's a current deal. Up to xmas day.
     
  8. Tim86

    Tim86 Well-Known Member

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    So what would the cross collateralize by policy mean for me? I already have my PPOR with BOQ on a variable rate with 80% lend. I'm now looking at putting an IP with them for a fixed 3 year rate at a 80% lend.

    If they automatically cross collateralize the loans what would that mean exactly? Isn't it when they use part of one loan to secure the other? But if they are 80% refinances their wouldn't be any need would there to use part of one loan as the "deposit" for the other? Or does security for the other loan mean something else that I'm missing?

    I don't think I know what I'm talking about here so any help in the general direction would be appreciated. I'll do some further reading too.

    I guess the thing that would be concerning for me, is if later on I wanted to refinance one property away from BOQ and being crossed with another BOQ loan would somehow prevent me from doing that?

    But like I said I'll do some more reading and hopefully be able to find some answers.

    Thanks

    Tim
     
  9. Tim86

    Tim86 Well-Known Member

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    I think this actually answers my questions: Cross Collateralised versus Standalone

    I think i should be okay with my circumstances. Something pretty bad would have to happen to screw me up with the cross coll.

    Cross coll does sound like it sucks big time though.
     
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  10. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    HI Tim, it means that they'll take both your PPOR and your IP as security for your loan/s. Under 80% it's not as big a deal but if your values drop it would cause issues. I would ask them pro-actively to not cross, and see what they say. If they think they'll lose the deal they may reconsider - I did push the issue with my BDM and he was quite reluctant to say they wouldn't, but he did say it. It's worth a try.
     
  11. Tim86

    Tim86 Well-Known Member

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    Thanks for the heads up.

    The thing i find pretty rubbish is if i refinanced one loan away from them they could then check my serviceability for the other loan i have with them and if my income has reduced or the rates have gone up and i cant service any more according to their calculator they can then demand that i pay down the loan. Have i got that right?
     
  12. Tim86

    Tim86 Well-Known Member

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    I just spoke to my mate at boq and he said they dont do cross collateralized loans automatically. Its just an option like every other bank.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Yep. I had exactly that situation with Macquarie recently, ended up having to move all 3 properties to other lenders.
    Okay, that's not what I've been told, but I've never tested it out, either - I mainly use them for PPOR set and forget stuff rather than investors. I would suggest checking your loan docs to be sure. :)
     
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  14. blackenator

    blackenator Well-Known Member

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    So just an update on my previous post was previously on 5% interest rate and was advised can not do any lower since variable had the option to fix for 2 years with CBA offering 4.19 for my ppor which is actually an investment but they don't seem to care and 4.44 on my investment loan. Although the downfall was that the offset does not offset the interest on those loans I left another loan that I had for equity release fixed and my money will be offset against that.

    In my situation I really dont have alot of money in my offset because I use the funds for deposits for other properties but I can see this being an issue with people who are with CBA