Difficulty with ASB

[tony.s]

Hi there,

I'm new to posting but have been reading for a while. I have a rental at the moment mortgaged with ASB and am having trouble getting more finance despite having good equity and cashflow levels. Has anyone had similar experiences???? How do I get around this?? Would really appreciate some advice from someone more knowledgable than me.
Cheers
Tony

[Auckland116]

Maybe the banks are stopping throwing money at everyone.....

[RentMaster]

Hi Tony.s. Werlcome to the forums.

Call a mortgage broker. If your cashflow and equity is good, they will get you some more money.

[Traff]

Asb

Call Sue Tierney or Bevan at Mortgages By Design , they will sort it out no probs !

Mark

[Heg]

Ditto Traff. We use Sue at Mortgages by Design for all of our finance. IMHO it is much simpler to use a broker to arrange your finance then to approach the banks yourself.

[PeterEmpowerEd]

Don't take it personally.

am having trouble getting more finance despite having good equity and cashflow levels

Don't take it personally, Tony. Increased reluctance of lenders -- reducing their 'exposure' to property investors is a classic property cycle indicator highlighted in Olly Newland's book The Day the Bubble Bursts. (Get it from the PT bookstore.)

Same with finance co.s (e.g. Bridgecorp) falling over.
We haven't even begun to see the ramifications of that collapse yet. There will be developers all over the country tossing and turning at night because the credit line they'd been counting on has just vaporised.

These events and happenings affect your lenders' confidence... there's a warning about this from Commercial Real Estate Investor's Guide in this post here: http://www.propertytalk.com/forum/sh...57&postcount=5

I agree with the earlier posts suggesting using a broker like Sue. (Great person.)
I'd also add: if you can, get the money from a (solid) non-bank lender -- they're less twitchy.

And Olly also stresses -- get your money from different lenders and avoid cross-collateralisation.

Chin up!

[The_Dog]

I love the ASB, and they never stop giving me money. I would build up a relationship with a Personal Relationships Manager and take it from there. I also find ANZ very good. Don't bother with the TSB (for investment at least).

Some people swear by brokers, I find I swear at them (Kris excepted). They have caused me some very stressful situations. I love dealing with the banks direct, it's just what works for me.

TD

[JBM]

Dealing with SBS has made me alot of money without the stress all about building a relationship tried dealing with ANZ on a bus loan for my Sharemarket investments first they said yes then they wanted this this this back to SBS no worrys funds already ade me 70k last couple months

[Commercial Dan]

Hi there,

I'm new to posting but have been reading for a while. I have a rental at the moment mortgaged with ASB and am having trouble getting more finance despite having good equity and cashflow levels. Has anyone had similar experiences???? How do I get around this?? Would really appreciate some advice from someone more knowledgable than me.
Cheers
Tony

Tony, get out of ASB with regards to investment property, try a BNZ or ANZ mobile manager, in my experience of the years they will lend you anything!

ASB are great for your own home and internet banking, but little else. They are too stringent on their LVRs and debt servicing ratios, if all else fails go to a second tier lender as better to get a good deal through and refinance later...

With regards to what Mr Aranyi has mentioned above though, he is right on the button, we are at the beginning of the slump and it is sensible to box with caution right now.

Remember every expert is a conservative, and defensive...good luck!

[tony.s]

Thanks for all the great advice. Sounds like it may be about developing more personal relationships with people in the banks or getting a reliable broker.
Cheers.

[Jabroni]

Never had any problems with ASB before since we've been buying rentals but then again its early days for us.

I also would suggest contacting a good mortgage broker, and no harm in trying.


Jabs

[lissie]

Love bankdirect ffor their competant online banking but they told us back at the start 2002 that they can only finance 3 investment properties max - regardless of price, LVR or anyything else. NB is useless in terms of technology but give us lots of money

[Rolf]

NB is useless in terms of technology

I can second that. I have moved my main banking to ASB, but still have some accounts with NB. I do enjoy visiting their branches though, just to experience the rustic atmosphere of a by-gone era with manual deposit slips and hand-written bank cheques etc.

A while ago they announced major changes to their so-called 'online banking', but all I noticed has been a change in background color...

[pl]

I have most of my lending with ASB, but now finding that they follow certain rules far too closely. They use to be great, but doesn't seem to be able to do anything for me now. Time to go elsewhere I think.

[Mojo]

We thought ASB was the bee's knees for a while there, but only after requesting to switch personal bankers (we were so unhappy with our first guy we were ready to walk). Our relationship with the new guy was too good to be true: he OKed virtually everything we wanted to do (in terms of borrowing), and nothing was ever a problem. Then out of the blue, he gets promoted... right out of our lives. All downhill from there - our new PB was impossible to get along with, refused us anything and everything we were after no matter how small, despite very good equity numbers. It was all about 'policy' after that, and they couldn't be budged.

So we pulled all our business from them... Much better experience with National, but we've reached the (albeit much higher) limit with them now too so can't expect them to be lending us any more any time soon. Still, a good relationship with our personal banker there has been mighty useful when we've needed a bit of slack in rougher times... The NB experience is altogether more personable, which is a small but still important-to-some consideration. ASB is definitely lacking in that area in our part of the woods..