Investor Friendly Banks

Hi PC Members,

Apologies if this has been answered in another thread. I thought I would ask anyway as the answer to my question will change on a regular basis. In the current market, which banks would you consider investor-friendly in terms of borrowing limit and also banks that are the easiest for equity pulls/loan top-ups? I am only looking at mainstream lenders.

Thanks in advance.

 

For borrowing capacity - If you are looking at mainstream lenders you won’t find what you want . Liberty , bluestone and Pepper are , for various reasons , and in no particular order - going to offer you far more borrowing capacity than “mainstream” brands .

cash out /top up policy is a separate issue - and generally unrelated to max borrowing capacity

 

Thanks for the suggestion Euro73, but my appetite for risk is limited to mainstream lenders and there is also the issue of higher interest rates etc.

 

It really depends on the finer details. Self employed vs. PAYG, base income vs. bonus/commissions, living costs, what your liabilities look like, etc etc etc. It also constantly changes. At the minute I'd start with NAB and Westpac.

 

Thanks Richard. I am a PAYG employee. I will explore options with the 2 majors mentioned.

 

Depends on what you mean by 'investor friendly'. Non-conforming lenders (Pepper, Liberty, Bluestone) are certainly more open to investors than most other lenders, but they come at a cost.

For the most part, the environment isn't very investor friendly and hasn't been for a while. Some lenders are more unfriendly than others.

 

Im just wondering what are these costs are dealing with non conforming lenders

 

Generally quite a bit higher. With non-conforming lenders you'll probably pay an application fee, their solicitors fees and the valuation. It can easily add up to $2k-$3k.

These lenders will do things for you that other lenders won't. They know it, so they charge a premium for their money.

 

Ohh ok just minor financials (which pending the property might make or break the deal I guess)
Are there any other reasons why I would avoid these lenders (other than these premium charges)

 

Their rates are high and tend to only go up from there. Once you go to these types of lenders, the only way out of it tends to be to sell the property.

 

I’m paying less on my variable loans with pepper than the ones I fixed with Westpac 2 years ago.

So depending on the situation the rate may not always be better with the big 4.

 

Just a sign that you fixed your westpac loans prematurely, not a true comparison of the two lenders current variable rate offerings.

 

Yep I fully understand that. I’m just sharing an example for the OP to understand that the “situation” can sometimes mean you still end up with higher interest rates with one of the big 4.

Higher interest rates was a concern they had. Also they didn’t say they were only interested in Variable rate loans.

 

The situation you mentioned is not normal though, you compared a fixed rate from two years ago with a current variable rate, in a market where rates have continually decreased, at least compare apples with apples.

 

Thanks for stating the obvious. I will leave it to the OP to decide if the info was useful or confusing.

Have you got anything to share with the OP or contribute to the conversation or are you just here to critique the posts of others?

 

Sorry that you're offended by the fact I pointed out your post was misleading and not a true reflection of the fact that rates are generally higher with the smaller lenders compared to the big 4 (as others also stated above) - I was only clarifying, not intending to offend.
Have a great day

 

Ok thanks for clearing that up. I’m not offended so all good.

Enjoy your day as well.

 

How much part serviceability will play if one wants to pull equity by refinancing (or any other available strategy) with big 4 and likes of.liberty and paper?

 

You can have all the equity in the world but you will need serviceability in order to access it - in basic terms you need to be able to show how you can repay the debt - regardless of lender.

 

Thank you @Morgs