Diversified Lending Structure (how to maximise your borrowing capacity)

Fully Agree

 

For me I'll be honest I like to start with CBA most of the time because of the following...

1) Upfront vals and AVM for under 80%
2) Cash out up to 80% no hassles.
3) Servicing existing debts at (actual rate based on P&I +20%) works well for those with a mix of PPR and IP debt and for expanding portfolios.
4) Policy is good for most things that can be a roadblock with others ie contractors, postcodes, LMI, mat leave etc etc
5) Quick answer to pricing requests. Good pricing for $1 mil + also.
6) Used to be quick service (pink diamond broker)
7) Post settlement ease of switching etc
8) In house branch rep for offset account / credit card stuff.

Then its case by case for the rest with Nab right up there.

 

@Marty McDonald I do a lot with CBA too - they're hard to go past for investors at the moment.

 

Unfortunately CBA are one of those banks that dislike leaseback lots

 

What sort of leaseback arrangement is it? Is a display home?

There are several lenders that will handle leasebacks such as NAB, Adelaide Bank, Auswide, Westpac, St George, etc

 

They are either used as sales offices or parking lots by the land developer . Normally with leases of 3plus years.

Don't know about the other lenders you have mentioned but not sure of Westpac being keen on financing them

 

Lenders generally don't like leasebacks of more than 2 years - is it currently vacant land? What are the conditions of the agreement? What sort of property is it?

 

Like i said on my previous post. The land gets used as sales offices or parking lots on new residential development sites. Normally with 3 year plus leases returning upto 8% pa as rent.

 

We did one one of these in Sydney about 18 months ago with NAB no issues but you do need to get credit to review and give their ok. Get your broker to order an upfront val and run it past credit. You need to email them the conditions of the agreement (term, repayment terms, etc).

 

Corey has been teaching industry members how to assist their clients with investment finance

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The example you gave is pretty much like my circumstances but I am getting less from the banks.

 

You

You are most likely with the wrong banks.
It makes a huge difference which lenders you use.

 

Probably, I bank with NAB. I think I should look at others.

 

NAB is the last place you should be putting your initial lending - they're a late game draw card which you should keep in reserve once you have a few properties under your belt.

Have a chat with an investment focused broker who can review and see whether it's worth restructuring your existing lending while you still can and give advice on better structures for the future.

 

I just refinanced my home loan few weeks back. They offered me $1000 to stay with NAB, which I will get after 3 months. I will be looking at other options soon. Who on here provides free until advice? Thanks

 

what is 'until advice'? I would charge for that.

 

Sorry just a typo. What I meant was I would be changing the lender in about 2 months time. Until then i want to look at some options for my PPOR and then IP.

 

If the $1,000 is important, just change to another lender who is also offering a cashback, ANZ, Westpac etc. In the end though, $1,000, or a couple of points in interest rate isn't worth holding up your investment journey by being with the wrong lender.