Swapping Security with NAB

Hi,

I'm about to sell an IP, the IP is held as security for a LOC which is used for shares. I asked the bank to switch the security so my PPOR is held as security for the LOC.

They have told me I will need to do a full loan application for this. Income and LVR will not be an issue however I have recently become self employed and only have 8 months financials so might struggle with getting this over the line.

I would appreciate some guidance here, has the bank told me the right thing? Is there any way around this?

Cheers

 

I'm fairly certain that the NAB can do security substitutions if it's all same day settlements and the LVR as the same or lower. That said I haven't done this specifically with the NAB.

It's not uncommon for a LOC product to have restrictions like this when to a regular variable loan. It may be possible to get the loan switched to a regular variable home loan and then perform the security substation. It would be worth asking the NAB this question.

 

Thanks Peter

 

I would think it is a variation. I am doing one for a client now, but we are doing other things such as applying for an LOC so income docs have been supplied, but you should be able to do it without a income proof.