Big Bank Mobile Lender gone AWOL - need help

Thanks so much, Redom. I've been reading your posts here for a long time as well, and you've been consistently helpful and knowledgeable, similarly to Peter. Thank you.

What you say makes sense about the wrong channel, which is what I've suspected for a long time. In fact, that's why we approached our friend at Macq for the initial referral, but unfortunately she sent us to the current mobile lender, who is at ANZ, as you've guessed.

The scenario you're describing with the techie with the USD portfolio is not dissimilar to our situation. Perhaps the biggest potential difference is that I also hold a significant amount of productive margin debt on shares, on which I pay 1.5% interest annually. I wonder how banks here would assess that, and if there are some that would recognize it as something positive (currently it's producing around AUD 2 million in unrealized capital gains annually + realized dividends). I've spoken with several brokers for whom that scenario is seemingly too complicated, but I would hope that there are some brokers, and bankers as well, who are sophisticated enough to recognize that for the good thing it is. If we were to try to arrange something with Macq, or ANZ/Westpac private, what would be the right channel for doing so? Through a broker like you, directly, or otherwise?

Thank you for the question about the purpose of the refinance. I think the answer has several parts. The first is that we have continued to hope that our mobile lender would help us identify, access, and implement strategies and tactics that were advantageous both in the short and long run. Unfortunately, she has not done so. When we approached her to assist with a refinance, we had several interests based on what we thought made sense at the time, rightly or wrongly:
- Remove me as guarantor - mainly in the interest of avoiding potential complications related to my US investment debt
- Reduce monthly costs - because though my wife earns well I don't currently earn a salary and so far property has been our most costly and least productive investment class, so we'd prefer to free up as much money on a monthly basis to go into shares and other investments.

Honestly, I'm not sure that removing me as guarantor makes any difference. It just seemed like a good thing to do, but maybe it's not. Regarding the loan structure, we were very happy with the original loan we had before the lender stuffed it up - 30 years with 10 year I/O - but having it become P/I due to her error has become a real pain for us, and we were hopeful we could either find a way back to I/O or at least reduce monthly payments some other way. We don't really have any concerns about actual ability to pay the loan, I/O or P/I, but P/I seems like a waste of money right now when we could be putting it into other more productive investments instead. That said, I've been wrong often, am probably wrong now, and would be genuinely grateful to be told how and why I'm wrong, and what the better, right way is so I can do that instead.

You mention that if our main interest is to reduce costs it might be best to just stay with the bank and negotiate with retention. What's the best way to go about doing so?

 

Yes. It would have been. For sure. Unfortunately it was quite some time ago and I'm not sure it would help now. Do you think it might?

And yes, it was crazy. She misunderstood emailed instructions from me regarding the loan, acted on those without reconfirming with us - despite the loan actually being in my wife's name - and then when I realized what had happened she simply said "Sorry, it's too late. There's nothing we can do." Worst lender ever...

 

Depending on the lender, yes, the process might still be ongoing. Let's just say that in my opinion some lenders are best avoided at the moment if it can be helped. Response times are terrible and have been for the better part of 2020. I'm having trouble comprehending why they haven't been able to address this yet. Improvements are long overdue.

No idea where your home is, but generally speaking prices are higher today than they were in 2016. There's probably some equity in there.

Need you ask? P&I to IO requires full assessment...

 

I thought maybe it was some sort of special deal that had a 5+5 arrangement. I've only ever dealt with one lender with these really long IO periods so it's not something I'm familiar with.

 

No surprise with noting the lender it is - probably the wrong door and the wrong channel. I generally don't like anything complex with certain credit teams because they're just too silly to understand what good credit deals look like. Vanilla, simple or nothing.

If it means anything (many brokers will disagree) - some mobile bankers from some banks are excellent. They have wonderful processes, speed, knowledge. I'm a process and 'customer experience' nut in my businesses, I work hard to try and set it up right. I cant compete with some of the mobile bankers with millions invested into their processes though - IMO no broker or brokerage can.

Re your situation, ANZ have a 1 year fixed with 100% offset at 2.09. It's very very sharp. Maybe consider a simple product swap, its hard to beat this rate and have flexibility of offset too.

For a situation this complex, I don't actually think the value of refinancing is worth it at this stage. OO P&I lending may not be the best for cash flow, but your talking a 10-15k interest saving vs alternative IO products. Given cost is a consideration, this will likely be the winner.

Best part, they can do it over the phone with you in 15 mins.

 

Yea you should have jumped on it the moment it happened. Would be a hard sell now I suppose..

 

Thanks, Redom. Would you be so kind as to explain this a bit more?

I'm a pretty good learner - with an MBA from a top school - but my knowledge and experience is more in stocks and startups, and I remain obviously lacking in knowledge/understanding/savvy around residential property.

Regarding the 1-year fixed with 100% offset at 2.09% - are you suggesting that I could just call up ANZ, ask for this, and they could approve it over the phone in 15 minutes? What would happen after the year - a simple reversion to the old loan terms, or something else?

Honestly, one consideration is to get things as well set up now as we can while my wife has her current salary so that we can have the flexibility for her to do other work, or even take a break from work, sometime in the future. For that reason, it would be good not to have to go through another assessment process several years down the line.

You suggested that the value of refinancing may not be worth it at this point, even if cash-flow is a consideration. I had a bit of trouble understanding what you wrote after that. Could you please explain a bit more?

Thanks so much!

 

No worries.

• OO IO loans, the type of loan i think you noted that you may want, is generally an expensive product - at around 3-3.5%.
• OO P&I Fixed 1 year with ANZ - which you have access to by virtue of being their customer - is at 2.09%
• On your mortgage size, this is a very big difference in interest cost.

After a year, the loan will revert back to the variable loan and you can choose to refit the loan then.

That is, it may actually be better off paying P&I at this lower rate than requesting an IO period. Given your financial situation, this should be affordable anyway (cash flow wise).

 

I’m not being rude. Your circumstances just don’t make sense.

Stop emailing the bank.Just pick up the phone and talk / complain to the bank directly. Ask for a private personal banker and your net wealth will get you one. Normal people get mobile lenders, you will get a private personal bank contact for easier and faster transactions.

Make that new person work and do what you need. If not, call another bank cause they would all be happy to take on your account.

take control of the situation, don’t wait for an email response

 

Thanks, Peter. The loan is with ANZ. Based on our experience to date we'd rather be almost anywhere else.

Thanks for letting us know about the response times. It's helpful when considering the situation of the lender, and giving her the benefit of the doubt - which tends to be my default. The biggest problem for us, honestly, is that she's been so non-communicative and unclear, so as far as we know she could be doing nothing or could actually be moving mountains to help us. We just don't know. Also, because she's non-communicative, both she and we miss out on the opportunity to work together as a problem-solving, opportunity-creating partnership. She may be feeling misunderstood, and we're feeling left in the dark and powerless. It's not great.

She tells us that applications with foreign-earned income are taking especially long for assessment, but others have told us that this isn't true. What's your experience?

The home is in Fitzroy North.

 

Hi Foxdan. Thanks for clarifying. I appreciate that, and now I appreciate where you're coming from and both your intentions and advice. Sorry for misunderstanding, and thank you.

Yes, I agree, and it's helpful to have the clear, direct, and forceful reinforcement from you. Thank you.

We've been overseas and overwhelmed with a lot of complicated stuff, otherwise we would have been doing exactly what you're suggesting. Now we're ready to do so.

Recognizing that, who should we ask for when we call the bank? Today I called ANZ and waited on hold for 30 minutes before hanging up in frustration.

And yes, I'm sick of email and delayed responses. In the USA I get on the phone, talk with a "dedicated" person at my bank within 30 seconds, at any time, and get a helpful response. Here I've had nothing but headaches and I'm tired of it.

 

Oh, ANZ. We had all sorts of issues trying to get a refinance with them due to foreign income. It took MONTHS and then they rejected it.

 

Damn. Alright. Time to find another lender.

 

You have plenty of good brokers here from Melb.

So just to understand, you originally went to a banker which you regret using and shouldve engaged a broker, but then you engaged in the services of another banker which has let you down again?

Third time lucky, engage a broker this time ?

 

I was just reviewing this thread...as someone familiar with the inside workings of a big domestic bank, I can probably state with conviction that “working together in a problem solving, opportunity creating partnership” is very far from the mind of a product-shifting, volume-based transactor.

You will struggle to find someone like that even in the Private Bank segment of majors - there are relatively few truly capable individuals operating in that segment even.

As most have already stated, you need to look at a sufficiently skilled and experienced independent advisor (broker) otherwise you’re stuck in the ‘sausage factory’ ...as indeed you have been to-date.