CBA equity release requirements

Discussion in 'Loans & Mortgage Brokers' started by couq, 26th Mar, 2017.

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  1. couq

    couq Well-Known Member

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    19th Sep, 2016
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    Location:
    Melbourne, Australia
    Hi there,

    As discussed in another thread valuation with ANZ came back short so looking at other options. It is a refinance to release equity

    Just a couple of questions.

    Do Commonwealth bank offer upfront property valuations?

    Also I have paid LMI up to 90% so to release new equity I would not have to pay LMI again or only a proportion of it. Is this correct?

    Lastly I had issues in the past (3 years ago) releasing equity with CBA without a contract of sale. Will CBA release my equity so I can have it sitting in an offset account for the time of which I will be looking to buy or do they need a contract of sale to release equity.

    Thanks again for all the help.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Perth WA + Buderim Qld
    If you've paid LMI with ANZ, you'll need to pay again with CBA if borrowing over 80%.

    You can get vals upfront though. You can get equity with CBA, I usually show that servicing is fine for the new purchase and it's all good.
     
    Shahin_Afarin likes this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    You can get an upfront val done with CBA - but you'll need to crunch the numbers to work out whether paying a whole new LMI fee is worth the refi.

    CBA will cap it at 90% incl of LMI and will prob want to see a preapproval for the intended purchase.

    Cheers

    Jamie
     
  4. Corey Batt

    Corey Batt Well-Known Member

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    Adelaide, SA
    Yes CBA do allow upfront valuations - it's also possible to use their computer valuation system for <80% LVR deals.

    You'll need to justify whether it's worth paying LMI again if CBA does value the property higher.

    Above 80% LVR CBA does get finnicky about releasing equity - especially right now where they're being sticklers to try reduce their expansion in investment debt. Is this an IP or a PPOR? If the former they won't take the security on at this time for a refinance.