BOQ laying it all out

From a BDM email today -
"BOQ policy is to cross-securitise whenever there is multiple securities. Please bear that in mind because it is rare that we allow stand-alone."

Good to keep in mind, particularly when using their Specialist products at super high LVR's. They will own you forever.

 

What if I say my way or the highway?

 

The highway it is

 

or just finance only the one property through them!

 

I have learned this lesson through bitter experience. :/

 

So have I. Rolf ended up pinching 4 loans off them to untangle my mass BOQ Web and I only have 2 properties with them now, both stand alone including PPOR which is offset.

pinkboy

 

Absolutely right

I recently enquired first hand about their boq specialist product
Its great in the sense its 90% no lmi and they will take actual payments of ofi, BUT they insist on x coll
That is the real killer for the deal. So it will mean 1 or max 2 properties only with these guys
They were very stubborn about the x coll bit.

 

Would a lender like BOQ who is insisting on x-col, be less likely to grant an equity release if your property went up in value and you just wanted to use the equity growth as a deposit for another property with ANOTHER lender? or does it not make a difference?

 

It's the bank I use the most. Never had a problem when it came time to refinance or sell. Never.

 

It shouldn't make a difference. The only issue you may hit would be they would want you to demonstrate servicing on the end debt with their calculator, which may be more conservative than the new lender. But that's not uncommon.

 

Not sure if this is simplifying the process too much. But what's stopping someone from acquiring say 4 properties all x-col @90 LVR + no LMI to get their toe in the market, then wait a few years for the portfolio to rise 10%. Could they then simply refinance with a new lender @ 80% LVR and insist on not being x-col? This process could also be sped up by paying down some principal at the same time.

 

Great plan, but what if it takes longer to get that increase than expected? What if your personal details change and you need to sell one? What if rates start to rise and you want to fix one or part of the loans?
Borrowing to 90% is powerful.

Avoiding LMI is a fairly small benefit in comparison id suggest.

 

What if you retire and need to sell one?

 

They never have cross-securitised.

 

Oh, I read it that they were crossed and you have never had a problem. Even better if they ain't

 

I don't agree with this.
I have 2 loans with BOQ @90% lvr (initially) and they are both stand alone.
Plus another 2 loans outside of BOQ and question was never raised to bring in those securities into a pool.