Using equity when loan is with another bank

I am with nab and am disappointed with the way their service has been lately.

I want to access equity but they are giving me a petty valuation, preventing me from getting better potential equity.

Been talking to a broker and he believes other lenders can definitely get me a better outcome.

The only thing is, if I want to use equity from my existing loan, does it have to be with the bank im committed with?

So if say cba offers me a better valuation does that mean I have to switch my loan to them before I can access the equity promised by them.


And also what does fixed interest breaking fee usually cost?

I have a year left on my term with fixed rate at 2.49% with 360,000 in that loan. If it won't come to too much im happy to pay it if it gives me the freedom to access my money full potential

 

General rule is one lender per security, so you'd need to refinance to another lender.

In this instance if you're looking to maximize available equity you'd run valuations with multiple lenders to see what the most favourable outcome is.

The break fee depends on a number of factors, the only way you can get an accurate figure is asking the lender themselves.

 

You would generally want to do a few valuations to see which will give you the highest. And yes you will need to refinance to that lender.

Breakcost is calculated differently daily and it's best to call up the lender for the breakcost, it could minimal.

 

You can't use equity from a loan so not sure what you mean. You can only borrow money. If the security is with NAB then another lender will only lend, generally, if you discharge the mortgage with NAB and bring it over to them. This would mean refinancing.

 

What kind of valuation have they given you? Full Valuation (where someone visits the property for inspection) Desktop Valuation, Automated Valuation?

The broker should be able to order some vals with other lenders to determine if NAB's valuation is on the money or way off.

Break fees for fixed rate loans change daily so you would need to contact NAB directly to find out how much it would cost you to break your fixed rate.