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Changing from IP to PPOR loan - CBA

Discussion in 'Property Finance' started by Mick C, 28th Jul, 2015.

  1. Mick C

    Mick C Well-Known Member

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    From CBA ( which will be a similar process with most lenders i would think)

    ** Note point 2.....a good reason why crossing your loan sucks!!!!

    Transfer from Investment Home Loan to Owner Occupied Home Loan

    The customer can only transfer from an IHL to a HL when the following is met:

    ► The loan purpose and property is no longer used for Investment, and
    ► The home Loan does not include any other investment property as additional security, and
    ► The customer confirms they are able to continue to the service the loan and are not aware of any reason why this would change, and
    ► The customer accepts, signs and returns a Letter of Variation
     
  2. chylld

    chylld Well-Known Member

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    will existing crossed ppor loans be counted as investment loans for the purposes of these rate hikes? (will it vary by bank?)
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They are making up the rules as they go along.
     
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  4. chylld

    chylld Well-Known Member

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    sensational
     
  5. almostthere

    almostthere Member

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    Thanks for this info. I was looking for this
     
  6. Till Kingdom Come

    Till Kingdom Come Well-Known Member

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    Can an IP be PPOR just by making a declaration (lie)?
     
  7. Sashatheman

    Sashatheman Well-Known Member

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    I am meeting up with CBA tomorrow, to correct the classification of my owner occupied place, from an IP that it was originally to OO.

    What does this part mean? Is this talking about cross collateralisation?
    "The home Loan does not include any other investment property as additional security"

    What does the confirmation involve? Series of questions?
    The customer confirms they are able to continue to the service the loan and are not aware of any reason why this would change

    Thanks Mick
     
  8. tobe

    tobe Well-Known Member

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    The confirmation would be pretty simple. If you have crossed, you get the investor rate, cause you cant have a second property as your PPOR.

    Let us know how you go with the manager Sash, I reckon you might be disappointed. I doubt the bank has the same 6 year rule CGT does.
     
  9. Mick C

    Mick C Well-Known Member

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    It's a simple tick and flick form. Broker and branch can do.

    No need to be reassessed...honesty system i guess..

    Also if the loan is crossed, it be the investors rate regardless...to uncross you need to do a full app.
     
  10. Sashatheman

    Sashatheman Well-Known Member

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    We only purchased this property in 2014. Rented it for 6 months and them moved into it.
     
  11. Kelly88

    Kelly88 Member

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    Actually I had a chat to a home loan specialist at a CBA bank today and she said that to change from an investment loan to a PROP loan, one has to apply for a new loan and discharge the old one. This includes submitting all the incomes, re-value the house, ask for discount .... This will take at least 4 weeks. To go from a PROP loan to an investment loan, you only need to sign the declaration paper. I thought some other people said that it's simple :(
     
  12. Brady

    Brady Well-Known Member

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    suggest second opinion
     
  13. tobe

    tobe Well-Known Member

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    Sounds like they are trying to churn a new loan to their numbers for the month. You just need to complete the cba misc app form.
     
  14. Brady

    Brady Well-Known Member

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    Mixing up brokers and bankers here Tobe, couldn't think of a bigger waste of time then internal refinance. Sounds like they don't know there is an alternate process
     
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  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    when brady suggests its a good chance he is on the money - been doin the cba gig for a while

    ta
    r
     
  16. CatCafe

    CatCafe Well-Known Member

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    Can anyone please provide a quick overview of the steps required to do this?

    My broker to me to do it over the phone. So I called up and got told I can't do it over the phone and had to go into the branch.

    The guy at the branch said they're still updating their forms and I can't lodge the request yet but I could do it over the phone.

    Then I called up again and got told their process has changed and I needed to do it through my broker....
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @CatCafe the only instructions I've seen are those around the misc form for the broker to submit. It takes all of 3 minutes to fill in.
     
  18. Mick C

    Mick C Well-Known Member

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    Broker can do it....fill in and flick off. Nice and quick
     
  19. sumterrence

    sumterrence Well-Known Member

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    Well you lost your serviceability from that IP by declaring an IP as your PPOR.
     
  20. Oshawott

    Oshawott Well-Known Member

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    whenever i needed to speak to someone at branch level, they always say out loud why do you need to go thru broker when you can have just come to us direct for the loan. i can't help but chuckle inside. the scenario above is exactly why.
     
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