Cash out policies for different banks?

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 ********.

Is Nab any better? Any other lenders to try?

 

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.

 

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.

 

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

 

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.

 

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

 

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"?

 

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.

 

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

 

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


pinkboy

 

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.

 

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%