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  1. #1

    Thumbs up Finance Not From a Bank

    Hi

    I'm currently seeking finance for my third investment property(cashflow+) but I can't get any more than 70% mortgage from any of the banks.

    I have 20% equity in my current two investments and they are cash flow positive by a good margin.

    My broker has found a company called "Sovereign" their website looks the real deal but how well known are they and are they as solid as a bank?

    Thanks Duder

  2. #2
    Join Date
    Oct 2008
    Location
    Auckland/Melbourne/ whereever the money is
    Posts
    1,380

    Default

    Sovereign are HUGE
    ASB & Sovereign have some sort of tie-up

  3. #3
    Join Date
    Jul 2005
    Location
    Christchurch
    Posts
    735

    Default

    ASB group own Sovereign. Sovereign are insurance with mortgages being new to them. They are also the largest mortgage provider outsude the banks. You should be pretty safe. They have some good products.

  4. #4
    Join Date
    Feb 2004
    Location
    North Waikato
    Posts
    651

    Default

    CBA (an Australian bank) own both the ASB and Sovereign. Not sure of the detail but should be as safe as any other bank down under.

    John

  5. #5
    Join Date
    Jun 2008
    Location
    Auckland
    Posts
    194

    Default

    Since they are underwritten by the same owning company, they should be just as safe as ASB I would have thought. I have held one mortgage with them in the past, no different to any other banks in my opinion. All loan facilitation is done through the ASB...or was for me anyway.

  6. #6
    Join Date
    Apr 2008
    Posts
    2,086

    Default Sovereign

    Sovereign is an insurer, usually. It may have moved into lending, but from a borrower's perspective, who cares? Solvency is an issue for the lender, not the borrower.

  7. #7
    Join Date
    Dec 2007
    Location
    Vienna, Austria
    Posts
    2,662

    Default

    Quote Originally Posted by Green Fish View Post
    Sovereign is an insurer, usually. It may have moved into lending, but from a borrower's perspective, who cares? Solvency is an issue for the lender, not the borrower.

    In today's economic climate, solvency of the lender is an issue for borrowers. If the lender gets into trouble.it may well see the receiver or purchaser of the distressed lender, re-assessing the risk level of loans. Where that risk is too high they could request the borrower to either refinance with someone else or pay enough cash to drop the lending into a better risk profile. If you were told to refinance with someone else and were already using one of the last resort lenders I would guess you would be up the creek without a canoe or paddle.
    Last edited by Austrokiwi; 28-05-2009 at 06:56 PM.
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

  8. #8
    Join Date
    Apr 2008
    Location
    auckland
    Posts
    39

    Default

    Quote Originally Posted by Austrokiwi View Post
    In today's economic climate, solvency of the lender is an issue for borrowers. If the lender gets into trouble.it may well see the receiver or purchaser of the distressed lender, re-assessing the risk level of loans. Where that risk is too high they could request the borrower to either refinance with someone else or pay enough cash to drop the lending into a better risk profile. If you were told to refinance with someone else and were already using one of the last resort lenders I would guess you would be up the creek without a canoe or paddle.
    We have already seen these issues in NZ with loans funded by GE who have pulled out of the NZ market.

    Borrowers still with GE are paying interest at 2% above market rates and can not get top ups or decent service on their loans

  9. #9
    Join Date
    Sep 2008
    Location
    Tauranga
    Posts
    1,518

    Default

    Make that 3.5%

  10. #10
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,833

    Default

    Read the small print about assigning
    the loan. It seems to be common with
    debts and now, maybe loans, too?

    Check some Credit Unions, as well.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


 

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