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Changing loan security without new application - ANZ

Discussion in 'Property Finance' started by SK Investments, 3rd Jun, 2016.

  1. SK Investments

    SK Investments Well-Known Member

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    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?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes

    Substitution of security.
     
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  3. SK Investments

    SK Investments Well-Known Member

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    Thanks Terry. I'll look into it further.
     
  4. Redom

    Redom Mortgage Broker Business Member

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    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%).
     
  5. SK Investments

    SK Investments Well-Known Member

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    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?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Loan would need to be in the same names.
     
  8. Redom

    Redom Mortgage Broker Business Member

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    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.
     
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  9. SK Investments

    SK Investments Well-Known Member

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    Thanks guys.