Will bank check serviceability for security switch

Discussion in 'Loans & Mortgage Brokers' started by Carol M, 17th Jun, 2020.

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  1. Carol M

    Carol M Well-Known Member

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    Hi,
    We hold 3 properties with same lender Westpac, and want to sell one of these - an investment property.
    There is ample equity in the 2 remaining properties to cover current loans @ below 80% LVR..
    But will bank check our serviceability again just to switch security and discharge mortgage?
    Is this considered a transfer of loan, or a transfer of security - or perhaps these are the same?
    I recall doing this several years ago, without having to do a full application/assessment.
    Thanks
     
    Carol M, 17th Jun, 2020
    #1
  2. Trainee

    Trainee Well-Known Member

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    Are the loans xcolled?
     
    Trainee, 17th Jun, 2020
    #2
  3. Carol M

    Carol M Well-Known Member

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    The one being sold is cross collateralised with one other property, and one remains uncrossed. Hmm, I guess this complicates it? But when I did this years ago they were cross collateralised then too.
     
    Carol M, 17th Jun, 2020
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Usually no

    ta
    rolf
     
    Rolf Latham, 17th Jun, 2020
    #4
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  5. Terry_w

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

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    Apply for a substitution of security as early as possible
     
    Terry_w, 17th Jun, 2020
    #5
  6. Fargo

    Fargo Well-Known Member

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    I have swapped security with Westpac and also Bank of Melbourne a few times and never had to do a serviceability assessment.
     
    Fargo, 18th Jun, 2020
    #6
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  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It's been a while since I've done one of these, but there's never been a new servicing assessment.
     
    Peter_Tersteeg, 18th Jun, 2020
    #7
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  8. gach2

    gach2 Well-Known Member

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    no - actually quiet quick at the moment comparing to refinancing - 5 days and approved with Westpac
     
    gach2, 21st Jun, 2020
    #8