Where did I lie ? Or is this you taking things out of context actually thinking it was cost free ?
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Bank won't lend for 5th property
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Originally posted by Wiz View PostJust refinanced a portion of our loan recently, and whilst in the bank we discussed our plans for 2015/16. Another purchase will see us at 5 properties. We currently have our own home + 3 rentals. He said that they wouldn't be able to help us with another property as 4 is their max, and any further lending would have to be through another bank.
Anyway, the short answer is the bank has obviously worked out that they will be on a hiding to nothing with residential property investors - especially the ones with a obsessive compulsion to keep acquiring - so they are seeking to limit the number of eggs they have in too few baskets.
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Originally posted by MichaelNZ View PostAnyway, the short answer is the bank has obviously worked out that they will be on a hiding to nothing with residential property investors -
Which is why they are now competing on loan rate.
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Originally posted by Wayne View PostResidential property is where they make their money - best risk/return.
Which is why they are now competing on loan rate.
"Residential property" covers a wide swath (ie: owner occupiers and 2nd homes). I am talking about people who buy it for commercial gain.Last edited by PTWhatAGreatForum; 27-01-2015, 11:10 AM.
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Originally posted by MichaelNZ View PostRemember Crafar farms? The banks were reportedly lining up to loan him loot at one time too.
"Residential property" covers a wide swath (ie: owner occupiers and 2nd homes). I am talking about people who buy it for commercial gain.
Residential - banks don't really care if it is owner occupier of 2nd (or 10th) - residential property is more easily resold than commercial or farms.
If the finacials stack up they are happy.
Residential property is lower risk than commercial - you can always sell a house for much less, at the wrong time you might not be able to give a commercial property away.
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Originally posted by iwik View Post2 to 3 banks to spread risk if need be, I'm happy having 6 at Westpac.
Now come on do not gloss over the question I put to you ?
4 months ago I asked ANZ for a pre-approval to buy a rental. My broker came back saying I can only borrow $150k, and asked me if I want to withdraw my application. I laughed at the number and agreed to withdraw my application. At the time ANZ just pushed up their internal serviceability interest rate to 7.75%, and will not allow the use of current/existing mortgage rates to calculate serviceability.
Then I asked him to go to Westpac, he got a pre-approval for me for $560k, which I can buy an unit in Auckland.
Since my wife doesn't want to buy units anymore, I went to my trusted banker at BNZ, and I got $860k! The banker at BNZ was clearly using my current interest rates as I was sitting next to her when she put the numbers into her computer programme. Another lesson learnt here is the benefit of fixing short term at low rates!
So, having a few banks at your sleeve definitely helps.
In a down market, it is even more important to be an existing customer of banks, because they are more likely to lend to existing customers due to your good history with them.
If you are not an aggressive investor and happy with buying 1 property every few years, then nothing wrong with having them all at one or two banks.Last edited by PTILoveYou; 27-01-2015, 01:14 PM.
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What are you using as equity/security Gary for the 860K ?
Originally posted by Damap View PostThe question is so inane it shows you are a troll and not an investor no need to respond. And if you don't even know why then that further proves my point.
of different mortgage offers.
How do you take advantage of maximising time and equity dealing with so many banks ?
(Is the heat starting to get too much ?)
You saying have your personal home mortgage at a bank where you have no rental
property mortgages with that bank ?
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Originally posted by Gary Lin View PostIn a down market, it is even more important to be an existing customer of banks, because they are more likely to lend to existing customers due to your good history with them.
Having a few properties (6 or 8 across 3 or 4 banks means you wouldn't be a very important customer to any of them.
Whereas having all your business with one (or maybe 2) banks means they understand you and your business better and should be able to help better.
I was also caught with a hotel apartment and my main bank wouldn't leand what I wanted as they took so little of the income into account serviceability was an issue.
I went to another bank (my main bank knew this) and got the money there.Last edited by Wayne; 27-01-2015, 02:12 PM.
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You saying have your personal home mortgage at a bank where you have no rental
property mortgages with that bank ?
If you ever do any investing you will appreciate the advice.
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