Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Why would you have more than one bank? Or Lender?

Name: Why would you have more than one bank? Or Lender?
Uploaded: 2019-01-23T00:43:44Z
Channel: Aaron Whybrow
Description: Aaron explains why property investors use multiple banks as they grow their portfolio. Different lenders have different rules on property valuations and…

23 Jan 2019

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Aaron explains why property investors use multiple banks as they grow their portfolio. Different lenders have different rules on property valuations and what types of properties they'll finance, so you often need more than one bank to keep borrowing. It's about finding banks comfortable with both you and the property.

Hey, it's Aaron from Diagnostics and Finance. Why would you have more than one bank in your budget? Why don't you have your transaction account, your credit card, your home loan, your investment property loans, your more investment property loans? Why wouldn't you have them all with the one bank? Well, it's a bit simple. Once you start getting off to more properties than say one or two, there is a potential need for other banks policies in addition to the type of property you might buy you you need to have another policy whether it's related to valuation and the bank being happy with the property or the bank being happy with your income and debt level at the same time. So it comes back down to the love triangle. The bank has to be okay with you as the borrower and the property. And once you start getting more than one or two properties, we have to start looking at other banks to diversify where the lending is, whether it's because of the property and how we need to deal with the valuation or whether it's to do with the serviceability calculator or your ability to afford money. So there's a little tip on why you would need another bank.