Rebalancing my home loans

Hi all

just want to know if its easy/possible to rebalance my loans with the same lender...so keeping the total borrowings the same but the constitution amended (subject to revals and LVR limits).

For example, say I have 3 properties with the following loans $200K, $700K, and $900K.

If I want to rejig each so that they're $600K each, does it entail a full application or a simple form? The lender in question is NAB.

 

Sounds messy. Why do you want to do this?

 

Why?

NAB should be able to do it in theory, but they are a painful lender to deal with.

You should take some advice on substitution of security so you could potentially sell one property with out needing to pay out its loan and then debt recycle the loan to acquire some other income producing asset

 

Depends on the values of the 3 existing properties, if one property only worth say $500K then you obviously end up with a cross collateralised situation, which is to be avoided in my opinion.
I guess it comes down to WHY you want to do it?

 

As @Terry_w mentioned, perhaps provide $700K and $900K IPs as security for ALL these loans including $200K (would this suffice say to 80% LVR or less?) and pull out the title from $200K IP instead! Are you aware you can have 2 IPs as securities say for 3 loans?
Basically try to offer the financier the least security instead of more, as they always want more!
That's what I plan to do instead.

 

It's a long convoluted story unfortunately but I have my reasons suffice to say.

 

Initial contact with the bank suggests it isn't a full application but of course that might change when we get into the detail.

 

I am thinking of this too (if I can get away with it). Are there any pitfalls to getting a title deed in your possession for an IP (not a PPOR) via this method as opposed to just waiting till the loan is naturally paid back?

 

Not really. fraud potentially easier, but this has been tightened up with electronic settlements.

 

What pitfalls, you suddenly get a title, meaning no loans on it, it is in your hands. So the only pitfall is you need a good safe to save it not lose it!
I did this many years back and then I drew equity from that title with another bank! You can negotiate better with other lenders too.

 

May I ask how how long it takes to process a simple variation once form is submitted (no equity pull)?

Example:- existing variable p+i for both splits :- Split A 500k and Splot B 200k after variation Split A 450k and Split B 250k ?

Thanks

 

a few minutes to about 7 weeks

 

I will take few minutes but 7 weeks .....hope not

But thank you for your reply, as it indicates a quick process nut if banks want to drag they can

Given the New Year PH , I am hoping they can do in 1 week!

 

generally a couple of weeks