Ideas to buy more properties while hitting serviceability wall

R

Rams - what an odd thought that no one else is doing that.

Keep your CBA loans on IO and make sure your PPOR is 4.1% or less and the investments no more than 4.40% interest rates. If they aren't, tell them you want a better rate. You can offer them anything off the web from the big banks.
CBA are the most expensive bank in my opinion.
They also own Bankwest but from all reports, Bankwest is a good and cheap lender.

Start using a couple of other banks to separate your risk.

Banks have an all moneys clause which means they can take everything they have a name on even if not crossed. So spread the love around.

 

Not my experience on either counts.

I noticed you work in finance, do you work for Rams?

 

CBA expensive? Compared to whom exaxtly? Superior to any of the Big4 in all my experience.

 

Any of the brokers here gone into the $1M+ w/ LMI recently? I know all are big advocates against, having the mortgage insurer involved was always avoid at all costs. But interested to hear if anyone has any recent dealings. My understanding is with Genworth/CBA it's now the same calculation/assessment whereas previously much harsher servicing.

 

I can give you plenty of examples where the CBA aren't the best of the big 4, but I agree that they are very competitive. It all depends on the circumstances.

I do however need a very good reason to recommend BankWest. In the past few years the only deals they've seen from here are for existing customers.

 

I've found them to be the most aggressive with discounting out of all the majors over the last 6 months or so.

Cheers

Jamie

 

Too frightened to try :-(

Would be interested to know too.

Cheers

Jamie

 

My first purchase was with BW and I have to say they were brilliant. It was a sub 80 PPOR on P&I and at that time it was one of the best rates on the market.
The banks service and online platform were also really good so I can't give a negative comment as a customer.

Appreciate though that you are an investment focused broker so they are simply no good in this space,

For the deal though that I had I would have no hesitation reccommending them.

 

The question is how did your rate compare to the market when you started, compared to about 2-3 years later. I appreciate that most lenders continually offer larger discounts to new customers as time goes on so renegotiating is always a good idea, but BW actively increase the rates of their older products.

For example, people taking a loan with a major bank a few years ago would have a 1% discount off the standard variable rate and today they might get 1.3% off. With BW you'd probably be paying the standard variable rate.

And yes, their servicing for investors is quite bad.

 

I had a BankWest loan once... when the rate reverted to the standard variable after 3 years I called them and they dropped the rate back down again. No paperwork was required.

 

To be fair I think I refinanced the loan before any honeymoon period was over.

And why did I do the refi? I needed multiple valuations which I was not keen to pay for so a generous ANZ Val had me move to them.

Another reason I am sure your not too keen on them is no free up fronts (unless that has since changed??)

 

The difficulty doing anything post settlement is the main peeve I have with them - For eg, with construction loans, you lodge the progress payment request for the client, but they won't let you know it's been paid b/c the client is 'theirs', and brokers are for introduction only. Their words.

I chuckled to myself after they told me that - just goes to show how little they understand (and value) our role.

 

I have access to upfront valuations with BW.

 

I'm setting up a pre approval o/o 90% lend for a 1.5mil property later in the week. I'll let you know how we go in 3 weeks time once the assessor picks it up. Interestingly he approached the bank direct who knocked him back. I think the issue was the banker didn't ask him about his bonuses.

 

Let me know how it goes, interested to see if it's still the same hurdles, from what I've been told it's not.
Is 3 weeks the turnaround time for the bank or because it's got to go to Genworth?
School boy banker, cost the customer a few weeks - hope the client didnt have a property in mind they were wanting to put an offer on.

 

Just finished. The client did actually make an application bank direct. Apparently genworth said no. About 2 months ago. Now I got to find a lender that uses qbe. And yes it's 2 weeks for assessment for us brokers without diamond status. I like to share the love around.

 

Thanks for the response and sharing@tobe. Did you find out what Genworths issue was? Or did you not get that deep with them? Interested to know if it serviced beforehand and why Genworth knocked the deal on the head.

 

@Brady my experience (in the last 6 months) with CBA to GW is that 2/3 applications fail if they're reviewed by GW. I haven't compared servicing calculators, it's the risk policies (which as you know aren't disclosed) that kill the deal every time.

 

It serviced fine, high income, might have been an issue around previous years bonus paid in USD? Genworth never give their reasons I'm afraid Brady.