Frustrated by Bank Waffle

[Frezzinghot]

Thought I had pre approval, went to put in an offer on a property only to find out bank will not lend on unit title! What the. Are the rules changing daily to suit what outcome the banks are wanting?

pre approval no longer means pre approval. What is the point of even getting it!

[Bluekiwi]

Welcome to the new world of bank finance.
You get nothing easy, if at all.

Kind of reminds me when you are young, and your mate tells you about this new hot bar, you go their, and all that's left is a few fatty drunkards in the corner.

Get a better mortgage broker FH and tell them exactly what kind of property you are looking at.

[artemis]

Very interesting, may we know what bank?

I read recently that some 4000 apartments will be delivered in Auckland this year. All will be unit titled.

If your bank's position spreads there will be some very unhappy developers out there.

[Frezzinghot]

Welcome to the new world of bank finance.
You get nothing easy, if at all.

Kind of reminds me when you are young, and your mate tells you about this new hot bar, you go their, and all that's left is a few fatty drunkards in the corner.

Get a better mortgage broker FH and tell them exactly what kind of property you are looking at.

Problem is Paul, current broker was the only one we found that has got us our pre approval, it’s not all that much either, serviceability was the issue but plenty of equity. So we go looking for months on end, hardly any good stock coming onto the market in our chosen patch, finally find something and the bank says no unit title! What the heck is going on, they didn’t say that in the pre approval letter either!

just feeling now is the worst time to invest!

fh

[Frezzinghot]

Very interesting, may we know what bank?

I read recently that some 4000 apartments will be delivered in Auckland this year. All will be unit titled.

If your bank's position spreads there will be some very unhappy developers out there.

liberty bank 2nd tier.

[Frezzinghot]

Very interesting, may we know what bank?

I read recently that some 4000 apartments will be delivered in Auckland this year. All will be unit titled.

If your bank's position spreads there will be some very unhappy developers out there.

That’s the thing, this unit was big and built like a brick %*&$house and in a great part of town. We were not going to lose on this long term, but “computer says no”, so back to the drawing board.

I wish they would bloody state this on the pre approval so we don’t waste our valuable weekend time on looking!

FH.

[Bluekiwi]

Liberty has some funny things going on, and once they wouldn't lend to me to buy a second house as it was in the same street as another I had.
Too much risk.

I would ask Kris Pedersen to try and put you with Resimac.
Better rates than Liberty and they might lend to you.

[Frezzinghot]

Liberty has some funny things going on, and once they wouldn't lend to me to buy a second house as it was in the same street as another I had.
Too much risk.

I would ask Kris Pedersen to try and put you with Resimac.
Better rates than Liberty and they might lend to you.

thanks will give him a ring.

FH

[brokerman]

Pre Approvals are done on people not property.
If you need non bank then I do more than just about anyone!

[GLin]

Thought I had pre approval, went to put in an offer on a property only to find out bank will not lend on unit title! What the. Are the rules changing daily to suit what outcome the banks are wanting?

pre approval no longer means pre approval. What is the point of even getting it!

Pre approval is generic, and not property specific.

If you want to make an unconditional offer or going to auction, you need to check with the bank first.

[eri]

am guessing that due to all the new units coming in auckland

lenders are worried if there was another GFC

units would drop in value more than stand-alone, as happened 2008-2010

therefore they are wanting even more security than the already higher security they demand

esp. for investors

[brokerman]

am guessing that due to all the new units coming in auckland

lenders are worried if there was another GFC

units would drop in value more than stand-alone, as happened 2008-2010

therefore they are wanting even more security than the already higher security they demand

esp. for investors

Not heard from any lender regarding this so spoke to Resimac, Liberty, Avanti and Bluestone. all happy to lend as per their existing property guidelines.

[eri]

coud you give an example of their guidelines

and current interest rates?

[brokerman]

Easier to say what they won't lend on!

Leasehold anything
Cross lease can be cut back by a couple, case by case
Leakers/Plaster a no no especially built 92 to 04 and no cavity system
Apartments generally over 50 sm excl balcony and never over 80%

Everything else pretty good. LVR's to 90% for owner occupied, 85% if a little nasty on the credit file, 80% investment (standalone expensive though so better bundled with o/occupied at under 5% fixed two years) 80% Lo Doc for self employed, 80% nasty credit issues and so on.

We've placed over 525 application with Resimac since they arrived here, no-one else gets close!

[artemis]

My experience has been to use one property as security, get pre approval against that security. The bank required only an agreement for S&P and the usual solicitor's certificate to release the funds. That was a few years ago, might be different now. Last time I applied for a loan there was a serviceability issue, too many hoops so I just paid cash for the place. The guy's face was a picture.

Anyway, the advantage of the one security approach is that it was simple - no reports or anything required.

ETA I did this several times, was fortunate to have a high value property to use.