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Macbank screw up - should I just pretend like I didn't know?

Discussion in 'Property Finance' started by jaybean, 25th Jul, 2015.

  1. jaybean

    jaybean Well-Known Member

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    Macbank accidentally set all my investment loans to regular instead of investment. It makes a big difference if I want to get an equity release if all 3 homes are considered PPOR but due to the recent investor rate increase it could leave me better off to leave things the way they are. What do you guys think?

    I have three main loans which I plan on refinancing, in the following order:

    1) NAB - needs a refinance asap due to IO running out soon, 80% LVR

    2) Bankwest - plenty of equity to unlock, 70% LVR

    3) Macbank - plenty of equity to unlock, but unlikely I will be able to as my serviceability is already stretched and likely to be decimated after I finish with #2.

    So if I may not be able to get an equity release anyway given my financial situation perhaps it's for the best. What do you guys think? I have proof that it's their screw up and my broker thinks I will be able to have them switch the types without any penalties, fees etc but perhaps I can pretend like I didn't know until such time that it benefits me...

    The only reason this might be a bad idea I can think of is if I'm more likely to be able to extract equity from Macbank than Bankwest due to all the recent APRA changes, so I would have to reorder the plan above.

    I should also add that a lot of my properties are shared, which limits my options (have to find banks that don't count the whole debt against me etc), which explains some of the bank's that I'm with (also have loans with AMP, who used to be decent...).
     
    Last edited: 25th Jul, 2015
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It doesn't matter from a tax point of view. Whats the worry?
     
  3. jaybean

    jaybean Well-Known Member

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    When it comes to get an equity release from them won't it matter then? Do they have different calculators for PPOR loans? (And won't other banks look unfavorably at them too when they are assessing my other loans?)
     
    Last edited: 25th Jul, 2015
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Tax deductibility is determined what the borrowed funds are used for.
     
  5. jaybean

    jaybean Well-Known Member

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    But I'm not talking about tax, I'm asking whether it will affect my ability to refinance.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    don't see why it would
     
  7. jaybean

    jaybean Well-Known Member

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    Awesome so it's in my interests to just be quiet about it and get the lower rates:)
     
  8. Marg4000

    Marg4000 Well-Known Member

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    Just check your paperwork to ensure you did not accidentally give information that led the bank to believe it was not an investment application.
    Marg
     
  9. jaybean

    jaybean Well-Known Member

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    No here's how it went down:

    They screwed up the initial setup (I think they gave us an LOC instead of an offset, or something like that). At that point in time it was all setup properly except this one issue. But they said to change it, they had to cancel all the accounts and recreate them with no fees, penalties etc. In the process of fixing this it seems they've screwed it up again. My broker says the initial application clearly spells out what we were after.
     
  10. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Why Macbank anyway?