Split loan requiring re-assessment?

Discussion in 'Loans & Mortgage Brokers' started by febstyle, 8th Apr, 2020.

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  1. febstyle

    febstyle Member

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    Hi folks

    I was looking to fix a portion of my account (can't resist 2.29% rate!) and have the other portion on a variable rate.
    I was then told that I need to split the loan first, went through the process, fill the consent form etc.

    As part of the process, they ask if we have any recent major change in our financial situation...
    My missus is currently on maternity leaves and is due to return to work in October.
    However, our combined have increased a fair chunk since we last spoke to the bank.
    All in all, we are very comfortable (esp. with the recent 0.75% decrease in IR) with the repayment etc.
    The bank broker said that there shouldn't be any issue and our case seems simple enough and can be fast-tracked.

    But... Today, I was told that we need to be re-assessed again.
    Hang on, I am not actually looking to borrow more? If anything, we're lowering our repayment quite substantially by fixing a portion of the loan?

    Does this sound right to anyone?
    Or is this part of the covid effect?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    which lender?
     
  3. Redom

    Redom Mortgage Broker Business Member

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    NAB? They do make simple variations painful.
     
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Need Another Bank or ANZ > 80

    eeek

    They say its "responsible lending" drivel :)



    ta
    rolf
     
  5. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Sounds like ANZ to me - so dumb!
     
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Nah Just Legacy Cobol I suspect

    ta
    rolf
     
  7. Watson1

    Watson1 Well-Known Member

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    Has to be NAB broker loan...
     
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  8. febstyle

    febstyle Member

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    That's it... NAB!
    Ah so painful
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I feel their non disclosure of that lack of a facility is like a new car without a spare tyre.........


    ta
    rolf
     
  10. Lucki

    Lucki Well-Known Member

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    I rang ANZ to ask them to combine 2 x P&I variable splits into one to take advantage of some surplus funds in the offset account linked to one of the splits - response was that I had to drop an application with supporting documents to process it. So b****y dumb if that is indeed true..
     
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Its true with most lenders, some are painless to split DOWN but an increase is credit critical

    Loans aint loans, and its never a problem until it becomes one, which is why product selection must always go down a guided discovery process with an experienced banker or broker

    ta
    rolf
     
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  12. Lucki

    Lucki Well-Known Member

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    I don't understand why an application was not required to split loan A into B & C, whereas an application is required to combine split loans B & C back into A. I understand that is the policy, but just don't understand the logic as there are no other variations or increases requested.
     
  13. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    It's their money. Not yours. They can change rules any time
     
  14. Lucki

    Lucki Well-Known Member

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    Ah I thought they were lending my money back to me! o_O

    Read again - where did I say they can't change the rules? Just trying to understand the logic behind it that's all.
     
  15. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Yes this doesn't make sense!
     
  16. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    You dont have any money :)

    all the loan splits are the banks money

    Offset money is your money and you can use that as you want with an ADI lender

    Loans aint loans

    ta
    rolf
     
  17. flosed

    flosed Well-Known Member

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    I had similar issue with ANZ. But I was told that's due to my credit rating. I don't have problem with other lenders BTW.

    Somehow they think it's risky for me to split. But ok for others with better credit doing so without full application.
     
  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    NIL to do with your credit, everything to do with ANZ cobol


    ta

    rolf