Browse Forums Home Finance 1 Feb 17, 2010 12:43 pm I'm wondering what to do about a CBA loan manager who changes the offer details for an investment loan. first off we went back to the CBA because the personal loan representative (for a personal loan) had not bull#%~ed us and did what she said she would do in the time frame that we required. Unfortunately this rep moved to another branch and she wasn't able to handle home loans. So we talk to her boss. I made it crystal clear (several times during the interview and in a later phone conversation) to the CBA LM that the investment property was in rural Tasmania (classed as rural residential) and we needed the loan as a min 5 year interest only loan. We supplied all the financial details of income and she indicated everything looked fine. 5 days later (after being promised a formal response in two days) I e-mail to find out what is happening. An offer arrives via e-mail that afternoon: Loan Term 7 years Interest Only Period 1 Year Property To be advised Up shot of this offer would leave us (after known commitments) with $256.28 to spend on food, petrol, utility bills, birthday presents, etc per fortnight! I talk to this LM and point out the bleeding obvious on free cash flow. She says she can only put in another offer and see what happens. i mention that the property is not described in the offer document. she says that will be sorted out later. I know from conversations with other banks (I have mentioned this detail to the LM) that the location and size of the property is a funding problem (at least for the other banks). I'm concerned that the LM is just trying to sign us up for a home loan with the CBA (over the next 6 months) knowing full well that the investment property in Tasmania will never get funding. So basically, my question, should I approach another CBA Loan Manager in my area or is her constant mantra "We can do that for you." common to all CBA LMs? Do banks listen to what you want, agree and then draw up an offer that suits them? My gut feeling at the moment is to walk away and find another, more acceptable, investment property and of course a more suitable funding source? Re: Loan Manager Withholding Information 2Feb 18, 2010 3:50 pm Wow, that's amazing - so they considered neither your financial position nor the property when making you an offer? It makes me wonder what basis the offer was made on. I would feel like walking away if that's the competence level I'm dealing with. Some bank mistakes are understandable, but that doesn't sound like a mistake. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Loan Manager Withholding Information 3Feb 20, 2010 11:15 am Oh yes. In my last phone conversation, the LM got very humble once she realised we weren't a couple of wood-ducks and were going to walk. Still it didn't help, if they blow your trust by withholding information they do so at their own peril in other words we walked. Now we will pay down the personal loan asap and re enter the Loan (shark) Market a little wiser. Re: Loan Manager Withholding Information 4Feb 20, 2010 2:29 pm It sounds like they were getting you a personal loan to buy real estate? I have never seen them set up a home loan with a term of 7 years. One issue with CBA is that the longer you have an interest only period for then the less money their system allows you to borrrow. The rational behind this is that if you were to get a 30 year loan and have a 10 year interest only period then you would need to pay off the balance over the next 20 years. So they check you can afford the payments over 20 years not over 30. CBA is generally very good for rural properties in TAS, muc better than other lenders. However setting up a mortgage is quite difficult for the bank when compared to a personal loan. If the loan size is under $100,000 they probably don't care too much and do not want to help. For that reason they may have just decided it was easier to do a personal loan. I reckon you should talk to another bank manager. Good luck! Re: Loan Manager Withholding Information 5Mar 09, 2010 6:38 pm 'Sounds like they were getting you a personal loan to buy real estate? I have never seen them set up a home loan with a term of 7 years.' Sorry to say jb_money but the loan definitely reads: your application meets the Commonwealth Bank's requirements for approval of a 3 Year Special Economiser Investment Home Loan as determined in the summary below." And the term is 7 years as described above. But who knows what the LM planned to do once we were willing to sign? Curiously, the LM suggested in our last phone contact that it was possible to get a 10 year interest free home loan once I made it clear we were going to walk from the silly deal she was offering. 'CBA is generally very good for rural properties in TAS, much better than other lenders. That's what we thought initially too! 'However setting up a mortgage is quite difficult for the bank when compared to a personal loan. If the loan size is under $100,000 they probably don't care too much and do not want to help.' The loan amount was $145,000 plus our 25% deposit.'For that reason they may have just decided it was easier to do a personal loan.' We made our own decision, in the end, to sell down most of our shares (excluding those in super) and pay cash and be done with it. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19108 If you need to pay for a project manager you would be well advised to just engage a builder who would take full responsibility for the build. As opposed to you OB where… 5 15084 |