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?
     
    febstyle, 8th Apr, 2020
    #1
  2. Terry_w

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

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    which lender?
     
    Terry_w, 8th Apr, 2020
    #2
  3. Redom

    Redom Mortgage Broker Business Plus Member

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    NAB? They do make simple variations painful.
     
    Redom, 8th Apr, 2020
    #3
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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
     
    Rolf Latham, 9th Apr, 2020
    #4
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Sounds like ANZ to me - so dumb!
     
    Jess Peletier, 9th Apr, 2020
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Nah Just Legacy Cobol I suspect

    ta
    rolf
     
    Rolf Latham, 9th Apr, 2020
    #6
  7. Watson1

    Watson1 Well-Known Member

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    Has to be NAB broker loan...
     
    Watson1, 9th Apr, 2020
    #7
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  8. febstyle

    febstyle Member

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    That's it... NAB!
    Ah so painful
     
    febstyle, 9th Apr, 2020
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    Terry_w likes this.
  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
     
    Rolf Latham, 9th Apr, 2020
    #9
  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..
     
    Lucki, 16th Apr, 2020
    #10
  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
     
    Rolf Latham, 16th Apr, 2020
    #11
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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.
     
    Lucki, 16th Apr, 2020
    #12
  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    It's their money. Not yours. They can change rules any time
     
    Paul@PAS, 16th Apr, 2020
    #13
  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.
     
    Lucki, 16th Apr, 2020
    #14
  15. Terry_w

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

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    Yes this doesn't make sense!
     
    Terry_w, 16th Apr, 2020
    #15
  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
     
    Rolf Latham, 18th Apr, 2020
    #16
  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.
     
    flosed, 21st Apr, 2020
    #17
  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
     
    Rolf Latham, 21st Apr, 2020
    #18