Bank won't lend for 5th property

[iwik]

Where did I lie ? Or is this you taking things out of context actually thinking it was cost free ?

[Wayne]

Why are we talking about the number of mortages?
Surely it is the $ that count not the number.

[PTWhatAGreatForum]

Just 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.

Sounds pretty greedy to me. How many properties can you live in at once?

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.

[Wayne]

Anyway, the short answer is the bank has obviously worked out that they will be on a hiding to nothing with residential property investors -

Residential property is where they make their money - best risk/return.
Which is why they are now competing on loan rate.

[PTWhatAGreatForum]

Residential property is where they make their money - best risk/return.
Which is why they are now competing on loan rate.

Remember 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.

[Damap]

I said 6 loans with one bank was stupid. You said 2 or 3 banks. You had just said 6 with Westpac. Doh!

[Maccachic]

Sounds pretty greedy to me. How many properties can you live in at once?

.

Are you even aware what website you are on?

[Damap]

Dnftm .

[Wayne]

Remember 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.

Not sure what the Crafar farms have to do with it.
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.

[iwik]

2 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 ?

How do you take advantage of maximising time and equity dealing with so many banks ?

[PTILoveYou]

2 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 ?

Let me give you an actual example.

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.

[Damap]

The 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.

[iwik]

What are you using as equity/security Gary for the 860K ?

The 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.

Still answer that question, Gary definitely did not answer it - just a man with a series
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 ?

[Wayne]

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.

I understand the example.
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.

[Damap]

You saying have your personal home mortgage at a bank where you have no rental
property mortgages with that bank ?

Yes that is the safest thing to do absolutely. You use your PPOR for deposits through RC only. No cross securitisation.
If you ever do any investing you will appreciate the advice.