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Thanks for that 'insight' based on your combat experience...will 'use' this strategy as a ruthless negotiation approach to get what I want. As the customer we have control....
only other advice, don't win the battle but lose the war... Your contact at the bank is the one who's career you could torch they are also the one's who fight for you internally ... You need to manage the carrot and stick well to deliver your outcomes.
Oh... And always have a back up plan... If they hold firm you need to be prepared to walk away... I.e change banks.
What is the best rates at Westpac at the moment, looking at 5 year(carded is 5.49%). Currently looking to purchase PPOR and have enough deposit/equity to get to below the 80% LVR.
Bank is not negotiating rates if they only hold your investment properties. Only better rate if family home is held with them as well. That's my experience anyway, obviously lacking effort.
Bank is not negotiating rates if they only hold your investment properties. Only better rate if family home is held with them as well. That's my experience anyway, obviously lacking effort.
This is not my experience in the last 90 days. Banks will negotiate if you're low risk and have good serviceability. Sometimes they need a nudge... Take one or two properties off them and see if they'll negotiate.
but many real estate investors are so deep in old debt the banks wouldn't touch them under the new rules
so you can bluster all you like
if they don't think anyone else would take you on
there's no inducement to pay to keep you
part of the RBNZ LVR restrictions is to allow banks to refinance existing debt against a property at the current level to ensure borrowers are not trapped as you suggest they might be and in fact were before this amendment to the restrictions came into play. So you could move your 70% portfolio without being trapped... So you can still bluff your current bank or move.
another alternative is if you have multiple properties and across your portfolio you're at 70% LVR say... If you have borrowed above 80% (before 60% LVR rules) leveraging equity from an existing property you could have anywhere up to 100% borrowing on one property... The ruling allows you to move that finance to another bank and they can choose to take on that mortgage - they also have the option to decline taking it - assuming they do the balance of your portfolio could slip back under 60% allowing you to take the remaining propeties to a 3rd bank and get favorable terms.
True, but it does give more buffer to deal with coming problems. I tend to agree many people will struggle in Auckland, particulalry if the current wage pressures due to low unemployment triggers wider inflation.
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