Changing loan security without new application - ANZ

Hi all,

I will ask the bank about this but thought I'd post here first.

Is it possible to transfer the security of a loan without the need for a new loan application?

Maybe via a term deposit and then a new property purchase?

 

Yes

Substitution of security.

 

Thanks Terry. I'll look into it further.

 

Yes, two substitutions of security requests.

One to cash (term deposit), and once a property is found, another back from cash to property.

Note lenders they generally want you to find a property within a certain period of time (3-6 months usually).

Haven't done one with ANZ yet - but have done plenty this year with APRA changes holding people back and a good way to rebalance portfolio between states.

Also you can't change the loan agreement (can't increase the amount) - so you will need to find a security with similar value (and sub 80%).

 

Thanks Redom,

Do you know if the property will still need to be solely in my name or would it work on a TIC scenario?

 

Or if you could find a property quickly - just settle on the same day. (very hard to manage)

 

Loan would need to be in the same names.

 

Yep, can't change the existing loan - so whatever it is on the existing property. Changing borrowers would trigger a reassessment and go to credit.

 

Thanks guys.