Anyone else's bank turned around & said no to equity release?

So peeved, I organised a property bank valuation on my IP so that I can finance to purchase another IP and the bank let us do the evaluation and now that I've put the paper work in for the refinance (80% LVR) they've gone back to my broker and told her that they are not doing any equity release..

Argh so annoyed !!

 

Yes, happening a lot these days - but generally know before submission.

Many of my clients would not qualify for the loans they already have let alone increases.

 

Best to check serviceability before carrying out a val.

Having said that though - the val could have been arranged/conducted just prior to the lender announcing/implementing new servicing changes.

Cheers

Jamie

 

Been Delayed = Adelaide? Kooky Queensland lingo

 

Friggen hell - I thought it was just me. We have a loan been going through hell with Adelaide bank = 1 month now. They are useless!

 

The good news for me is that apparently ANZ are no longer treating granny flats as dual occ @70% LVR.

The bad news is that as Terry mentioned above, like many others I don't even meet the servicing requirements for my current debt.

It calls for a total change in plan from buy and hold to develop and sell in my case.

 

That just happened to me, although for my PPOR. Wanted to take the LVR to 80%. 50% of loan is fixed until April so may try refinancing with another bank then.

 

Just threw me off because we just built a granny flat so I have some equity that I was going to tap into and it was just a blanket not doing any equity release regardless of LVR!!

@SK Investments what does that mean in terms of a loan if they don't treat the GF as dual occupancy?

 

One of the brokers posted recently that Anz are changing their policy for granny flat construction. They were treating it as a dual occ which they limit to 70% LVR, but will now treat it as normal resi build at 80% LVR.

 

If the LVR is sub 80 and current loan is variable then no need to limit yourself to ANZ who have a terrible servicing calc. Look at using another lender that will allow the GF construction and who has a more generous calc.

Just because one lender says no - doesn't mean it's a blanket no from all lenders.

Cheers

Jamie

 

Things are very tight for me, I was planning on selling a property after starting a splitter block development but will more than likely have to do it beforehand.

I might email you again to see if we can make something work Jamie.

 

Which lender was this? Did your broker run the servicing on the end debt and what was the reason the lender gave you for not releasing the funds?

 

@Shahin_Afarin

ING, pretty sure that's what she did and the reason given was they are not doing any equity release on any investor loans..

 

Why not just move? ING are terrible for investors - you've got nothing to lose here.

 

That policy has been in place for a few months now. Alongside ING not touching anything investment related in Sydney.

 

How sure are you?

 

Pretty sure. Brokers get an email when policies change. Your broker would have too, sometimes this sort of stuff gets overlooked however. There has been lots of changes recently. It's hard to keep up.

 

Weird....3 days ago i got equity release approved for 2 properties at 88% with ING.{investor loan}

 

Do you know what the assessor was told the money was for? Was ing doing the new purchase, ie controlling the funds?