Refinancing with the same lender

Hi PCers,

Quick question. Trying to refinance to a 30 year term with my current lender and they are saying thats not possible under "responsible lending", is this common? They are basically saying find a new bank if thats what uoi want to do.

Feedback is much appreciated.

 

Not common, but could be becoming more common in the future.

 

Its a relatively unusual reason to refinance (on its own). Maybe just do something else to the loan too if its a way around (swap repayment, extra min amount, pay a bit down, etc)?

 

Impossible to answer. Need more info..

Inbox if need be..

 

Depends on the specifics. How many times have you done this with the same lender? You can't keep refinancing ad infinitum. There may be a few reasons they won't do it.

Alternatively if you can service and your circumstances allow, consider moving to a more suitable lender.

 

So more info i requested a IO extension so i can fix some of my loans. Servicability came in short due to the loan term being 22 years after the 3 yesr IO consideration. Want me to pay the loan down by 80k. I asked why cant they refinance the loan as if it was a new loan and perform the servaciablity calcs based on 27 year loan term. They said wont do it under responsible lending go to another leander if thats what you eant to do.

 

1st time refinancing since loan setup

 

Its one of 2 things. Responsible lending or the assessor simply doesn't like your application and is finding a way to knock it back.

Is it normal? Well in yesterday's world no but in today's world yes.

Solution - look for another lender.

 

Are you PAYG? Are there components of your income which the lender may be treating a certain way which is impacting servicing?

Have they explained why they think its irresponsible?

 

Yep payg and rental income. Dont want to explain further. Just kept saying wont be responsible lending if we enable you to pay more interest. Something doesnt sound right. Keep telling me my only option is to pay $80k. And its not lvr because its about 70%. Its frustrating and its one of the big 4

 

What is your goal with this internal refinance?

There are lenders which will allow 100% of rental income - but then they are lower tier lenders.

Is there a reason you wish to stay with the existing lender?

Some lenders may have favourable negative gearing which may assist with the bottom line.

These are just few things, and we don't know more - what stage of life you are at, how much of the loan term is remaining? what age you will be when the loan matures?