Switching my loans

Hi,

I have a 345k residential loan and a 540k investment loan.

My tenants moved out of the more expensive property and I moved in there and have now rented out the cheaper one.

I was wondering how i go about switching my loans around so that i am paying a lower interest rate on the 540k as it is no longer an investment property?

Would it mean a whole new application? Or just a simple phone call?
Do i have to prove anything to them as serviceability will change ie less rent now being received?

Could the bank force me to sell 1 property if i don't meet serviceability?

Thanks

 

Just call up the bank

 

Some lenders might want you to fill in a declaration stating which property you're living in and possibly even provide evidence, such as a utility bill.

What a lot of people are doing is they're letting the bank know which property they now living, but they're not drawing attention to the property they've moved out of. They're having their cake and eating it as well.

 

Thanks. I'm just fearful that they'll say that there are now serviceability issues as I'm now working part time and make me sell a property.

Both properties are with the same bank.

 

I like your profile pic. I would enlarge it and put it on a tshirt.

 

Over 18 months I've processed more than a few forms requesting the loan type to be changed from investment to owner occupied. Never had to have a loan reassessed.

 

I do find that interesting.
How many people service as an investment and then move in at settlement and call the bank a week later to say they changed their mind? Would the banks check then?

I guess from a banks perspective their are a few key considerations here:

1 - They WANT business but ofcourse have to be fully compliant. This means on application they need to ensure servicing passes. Once that is done though the customer is on the books.

2 - For the banks to check every switch would cost them more in reassessment than the slightly decreased interest rate.

3 - Switching is a change in expense but expenses do change for everyone. For them to want reassess I suppose is sort of like saying why don't they check employment every 6 months?

 

hmmm I understand somewhat with commerical but SURELY not with residential.
Say banks call and wife is on maternity leave, someone just changed jobs, someone taking a leap year.etc.

What could the banks possibly do? Kick them out of their homes, even if they were still making the repayments?