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Cash out policies for different banks?

Discussion in 'Property Finance' started by Tim86, 28th Jan, 2016.

  1. Tim86

    Tim86 Well-Known Member

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    Im currently having issues with bank of queensland. Ive got over 200000 i want cash out with the refinance because ive added value to the property. They dont want to lend for my reason of needing it for building works at my ppor. They say they dont lend to owner builders...even though the property they would be lending on isnt the one getting work done on it.

    God banks are just bloody retarded.

    Is Nab any better? Any other lenders to try?
     
  2. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    I concur banks have dumb policies some dumber than others. Many won't have an issue with that $200k cash out though.

    Nab is now ok as of a few days ago for up to $250k. Under 80% cba no cash out restriction etc. I reckon boq has a general cash out restriction and the reason they gave you is a lame attempt to justify it. Disclosure NFI what their actual policy is as I don't deal with them.
     
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  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Not all banks (and their policies) were created equal. Some will let you pull out $500k without so much as a breeze over the app, others will veto anything over $25k.

    Have a chat with your broker - whilst there are certain banks are going to be better in this space, dependent on your other scenario parameters they may or may not be relevant to you at all.
     
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  4. Redom

    Redom Mortgage Broker Business Member

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    NAB may not be much better - they'll start seeking verification for anything above 100k or 80%. Some quotes, etc, may do the trick with your current lender - but i don't know much about their policies.

    What you'll find is it gets trickier to release equity above 80%, with most lenders anyway (ANZ continue to be the exception here, who generally do ok above this space and seem to waive their own policy verification requirements).

    Below 80%, you'll have more lender choice. CBA have done a $1mill+ equity release, approved within hours, and not asked a thing about what the funds are for (seems strange relative to the market, but their credit team don't seem to mind).

    In this situation, its about controlling lender choice and information. If they don't want to know, then you don't need to overshare. Saying its for building works/construction can draw eyebrows, whereas saying its for a future investment plan may mean it flys by.

    Cheers,
    Redom
     
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  5. Tim86

    Tim86 Well-Known Member

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    It really makes you wonder. Its only an 80% lend as well. Seems ridiculous.

    An old mate of mine works for boq and is trying to get the loan through for me. He is fine with it but its the credit assessor who is giving him trouble.
     
  6. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    NAB has actually increased it to 250k - a nice welcome change from the recent policy culture of tightening the screws. :)
     
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  7. Perthguy

    Perthguy Well-Known Member

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    That's bizzare. My investment partner did a cash out of $374k with ING without disclosing exactly what the funds were for. Just a vague 'for investment purposes' reason. He's a low income earner too.

    Maybe you should have just told them you wanted the funds for "investment purposes"?
     
  8. Redom

    Redom Mortgage Broker Business Member

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    Just read the policy update - thanks Corey. Definitely welcome, the majority of cash outs would likely fall under that mark, so its good to see.
     
  9. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hey Tim

    Sounds like a pretty straight forward deal with a lot of lenders. You've got a few good brokers responding above - why not hit one of them up to sort this out for you.

    A CBA desktop val coupled with a 1.36% discount off the SVR and a $700 cashback to cover refi costs might be a good start.

    Cheers

    Jamie
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    which is too funny since one of my clients on a fixed was just refused any cash out at 80%

    Love the consistency...................... mush

    ta
    rolf
     
  11. pinkboy

    pinkboy Well-Known Member Premium Member

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    Ring-a-ding-ding! @Rolf Latham - know anyone else who has had 'issues' with BOQ! :oops:


    pinkboy
     
  12. Perthguy

    Perthguy Well-Known Member

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    Pre-apra changes vs post-apra changes? My investment partner's loan was set up in Jan 15, 80% lend on a (previously) unencumbered main residence.

    Dam, I just realised we set that up a year ago and still haven't done anything with the funds. - should post that one in the first world problems thread.
     
  13. euro73

    euro73 Well-Known Member Business Member

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    A couple of others to consider - AMP has no cash out restrictions to 85%, and if its I/O but being secured against PPOR you will get the same rate as they offer for P&I. Macquarie's cash out is also pretty good to 80%
     
    Tim86 likes this.