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Next Lender?

Discussion in 'Property Finance' started by applebyte, 20th Jul, 2015.

  1. applebyte

    applebyte Member

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    Hi,

    I have multiple properties and 2mil loan with Westpac, standard investment loans, variable, 90% LVR due to being a medico.

    I could probably still keep going with Westpac, however been reading about the importance of diversifying lenders.

    Ideally looking for 90% LVR lender with medico deals, if they're still around in this lending environment? I still consider myself very early on in the property journey, so want to play it right with choosing lenders.

    Cheers
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Plenty out there - ANZ, St George (=Westpac), CBA, Macquarie, CBA, can't remember if NAB does it.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    The problem I see with continuing to use Westpac is that a) they have hard rental reliance policy which you may be hitting soon b) they have removed negative gearing so the larger your IP book the more the servicing is going to hurt you.

    Step back and look at your investment strategy over the next several years and plan accordingly.
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Another problem with the stated strategy is that I recall a minor policy update from Westpac about a fortnight ago. They no longer lend above 80% for investment lending. I imagine that this will take precedent over their medico LMI policy.
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Medicos are exempt from the max 80% LVR policy for IP's. They can still go 90%.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Good to know. I've got to chase one of these up tomorrow. :)
     
  7. applebyte

    applebyte Member

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    That's really great news Shahin, I'm lucky that's still in place.

    I'm still accumulating property, and I aim for houses around $500k that are neutral geared. I would buy houses with a combination of equity releases and saving.

    Which bank should I consider? Does it matter all that much who I go for next? I was thinking another big4 ANZ/CBA/NAB
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I dont know what version of medico or allied you are, but your question sounds to a finance professional like, I have this itch and I need some antibiotics doc....................

    Its damn hard for someone to provide a reliable prognosis without the basics of vital signs and/or bloodwork

    ta
    rolf
     
  9. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Is it important to have a strategy and a plan to use the right lender at the right time or even at all? Yes!

    In terms of which lender to use - this really depends on strategy and lender policy. I can say NAB is the best but what if you decide to buy a 4 pack? There is only one lender that will handle that security in the list you have provided.

    Careful planning will do you a world of good.
     
  10. applebyte

    applebyte Member

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    Thanks Rolf, you're right. I appreciate the vague and open ended nature of my question, I was hoping it would stimulate some discussion from which I could increase my understanding about different lender's policies and quirks. Your response however is probably fitting of the question being asked.
     
  11. Mick C

    Mick C Well-Known Member

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    Using the westpac group early on for medico is the way to go given they have a Rental relent policy which is fine with most doctors as most are contractors or self employed so would have tax returns with decent income anyway.

    Having said that at 2M ...i would start to look at ANZ or macq if you can service the loan with them....i prefer to leave CBA last out of all the medico as they are great for your out of policy deals and as last resort ( ie back up ... Plan B)

    There's no ONE answer that fits all...it all comes down to your short term plan and long term goals/strategy ...you need to ask yourself

    1. How many more properties are you looking to buy and in what timeframe
    2. How many more can you actually afford from a servicing point of view
    3. Any major changes to your financial situation/income
    4. Chance of equity release and when?
    5. Life cycle -- ie is marriage or change of job on the cards etc...Kids?
     
  12. ej89

    ej89 Well-Known Member

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    Medfin
     
  13. See Change

    See Change Timing Lord Premium Member

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    As a purely defensive move we have spread our loans between different lenders .

    One forumite was bankrupt during the Recession we had to have when he had some short term issues and the lender he was with rolled everything up and had a fire sale of his assets .

    If you have your loans with different lenders , it potentially gives you more time to sort things out .

    We have loans with several lenders , initially for this reason .

    Cliff
     
  14. C-mac

    C-mac Well-Known Member

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    I'm not a mortgage specialist but it might be worth looking outside the big-4 banks when you are divising this forward-strategy of yours. Some tier #2 lenders might work well in expanding your overall buying power though I have no idea what medico allowances those kinds of lenders enable...
     
  15. Tim86

    Tim86 Well-Known Member

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    I have found the absolute best bank to use, is the bank that agrees to give me money...
     
  16. wombat777

    wombat777 Well-Known Member Premium Member

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    I will be looking for more finance soon.

    My PPOR loans (50/50 split fixed/variable) are with suncorp.
    My loan for IP 1 is a fixed loan with CBA.

    I'm sitting at about 70% LVR across the above. Any opinions on lenders to go with next?

    Note - I am a Chartered Engineer.
     
  17. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Why are you @ 70% LVR and not a higher LVR?

    If you are a chartered engineer - why haven't you been doing 90% no LMI?
     
  18. wombat777

    wombat777 Well-Known Member Premium Member

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    Sorry for the confusion. To clarify the 70% LVR is based on current values of the properties versus current loan balances.

    My first IP loan was with CBA at 90%. I was not offered no-LMI. Will look to address that for my next purchase.
     
  19. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Only Westpac and St George (and to a less extend Macquarie) will do it @ 90% no LMI.

    They are not going to offer it to you - you will need to request it.
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Member of Engineering Australia?