bank loanRecently a chance meeting with one of our suppliers at First in Finance created a conversation about a personal scenario that the supplier (now a First in Finance client) had with his own bank of over 30 years.

The client was absolutely dismayed and despondent with the attitude of his own Bank when looking to acquire an investment property. Although the client has other investment property and a substantial asset position, his bankers declined to assist, stating that they would not provide 100% finance on the loan.

The real issue here is that even though the Bank in question have all the facts and figures on this client including:

  • Holding all their properties unencumbered
  • Having access to all the bank accounts that rental income and business income streams are transacted through

The Bank just refused to take the time to undertake a full fact find and seek to understand the clients position.

Had they done this they would have be drawn to fact that because the substantial assets the client owns are unencumbered, there is sufficient income streams to support an investment property purchase.

Why do Banks continue to do this?

  1. The personal touch in general has gone from Banks, you are only a number
  2. They have decimated their experienced staff and have order takers employed instead
  3. They don’t have the skill set to create rapport with clients, and take the time to understand their true position. Any experienced staff are too scared to challenge the status quo of new policies.
  4. Sometimes it’s all too hard, they are looking for vanilla PAYG deals.
  5. Their policies change, which impacts you, however other lenders have different policies, this is why it’s important to engage a finance broker in your finance solution equation.

There’s a better way

After talking with First In Finance, it became clear to our supplier that there was no need to lose hope. There were other alternatives and avenues.  To that end our supplier

  • Provided First in Finance with current details via a fact find process
  • Is now working with First in Finance to facilitate a finance solution for the new investment property purchase.

If you’ve been stone-walled by your bank, or are frustrated by their inability to recognise your full financial position and relationship contact us.


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