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

Discussion in 'Property Finance' started by JMica, 2nd Oct, 2015.

  1. JMica

    JMica Well-Known Member

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    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 !!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    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
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    not uncommon

    worst offenders AMP and Been Delayed

    ta

    rolf
     
    EN710 likes this.
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Been Delayed = Adelaide? Kooky Queensland lingo ;)
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    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!
     
  7. SK Investments

    SK Investments Well-Known Member

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    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.
     
  8. wombat777

    wombat777 Well-Known Member Premium Member

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    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.
     
  9. JMica

    JMica Well-Known Member

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    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?
     
  10. SK Investments

    SK Investments Well-Known Member

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    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.
     
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    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
     
  12. SK Investments

    SK Investments Well-Known Member

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    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.
     
  13. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    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?
     
  14. JMica

    JMica Well-Known Member

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    @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..
     
  15. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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

    Peter_Tersteeg Finance broker and strategist Business Member

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

    Speede Well-Known Member

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    Google Armchair Expert
    How sure are you?
     
  18. tobe

    tobe Well-Known Member

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    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.
     
  19. Speede

    Speede Well-Known Member

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

    tobe Well-Known Member

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