Finance and buying/selling dilemma

I am purchasing a property that I intend to make my PPOR. Settlement will be in about four to six weeks pending valuation.

I now have the potential to sell my investment property before settlement, however finance was pre approved without knowing I may sell this IP before settlement on the new property.

Loan would be less and would have more equity. Would be borrowing around 150k less in this scenario.

The question is would I have to go through approval again or would the bank just re-assess the situation, take new scenario into account and adjust the loan amount. Not sure what to do. Maybe have two pre-approvals depending on timing?

Settlement on both could be within a week or two of each other.

 

Assuming theyre not crossed, dont see a problem. Offset on the ppor loan and put the ip sales proceeds there.

 

It will need to be reassessed as the approval you currently have will be factoring in the rental income from the investment property. If you are losing the rental income you may need to drop the loan amount by more than $150k to still be able to demonstrate servicing.

 

Yes - As Simon says servicing may be impacted but with the lesser $150K requirement it may also help. Speak to your broker. You dont want a loan approval (it is conditional ofn changed circumstances) frozen at settlement because the information comes to light later. If its disclosed it may still meet servicing and assist the credit approval as a better outcome.