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Swapping Security with NAB

Discussion in 'Property Finance' started by Banister, 13th Aug, 2015.

  1. Banister

    Banister Member

    Joined:
    18th Jun, 2015
    Posts:
    9
    Location:
    Melbourne
    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
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    2,110
    Location:
    Melbourne, Nationwide
    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.
     
  3. Banister

    Banister Member

    Joined:
    18th Jun, 2015
    Posts:
    9
    Location:
    Melbourne
    Thanks Peter
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sydney
    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.