Currently in a bit of a bind and need help with refinancing. I currently have a residential loan being secured by a residential property (security actually owned parent in law) which was originally used to purchase a commercial property. I have another couple of loans used for resi IP and built a GF. Currently with NAB with all loans and they are becoming very difficult with trying to access the equity from the commercial property. Any brokers out there have experience with this or any forum members point me in the direction of a good flexible broker. Need someone who can bend the rules for me a bit.
There's quite a few good brokers here, have a read of some posts and find one to contact. You can also check the service provider directory https://www.propertychat.com.au/community/forums/service-provider-directory.36/watch It's important to realise that uncrossing this tangle is most likely not an easy or quick procedure. You will most likely have to move everything from nab, as they won't let go of any one security. The good news is the end result will be structured much better so you won't run into the same issues next time.
This is classic NAB and a poster child for why you should not cross your loans. Most brokers on this forum will be able to help you out. It sounds like you have decent equity, if I'm reading right - it sounds like the CIP is securing loans but not actually required if the loan is secured by the in laws property, so you may have wiggle room so long as the other properties values haven't dropped too much. It sounds like an interesting one!
If you are only looking to release your in-law's security via equity release that should be relatively simple (assuming you have the borrowing power to service your existing loans). If you are looking for uncontrolled cash out + a mid 4s commercial interest rate, that gets more difficult. ING will allow 20% of property value as uncontrolled cash out with a decent rate (if LVR is below 75%). But if you want more than 20% then you're probably best looking at ANZ (won't be as cheap, but they will go to 80% if the loan is <$1m). If they are crossed NAB may want to revalue all the properties which may cause.... issues.
It won't be what rules need to be bent - but what the numbers of property values/existing loans which will dictate this the most. Add serviceability into the mix and it'll be a pile of fun. Overall not that difficult, just comes down to what the numbers are. Is the idea to just release equity from the commercial property, or is there available equity also potentially in the resi property?
