Hi,
We are selling a property at the moment and will be discharging out mortgage, however we would like to keep purchasing property and thought loan portability might be a good solution. Our only problem is our income has decreased since we got his loan so if we were getting a new loan it is possible we wouldn’t be able to. My question is do you need to do a new application with income etc for loan portability or is it as simple as changing the security?Thanks in advance, Kate
I have been a broker for about 13 years now and never seen a loan ported. They are pretty rare. I beleive some banks do need a reapplication and a checking of income etc while others don’t, unless the loan needs to be increased.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think you should run the numbers first with someone at the bank first.
You might be able to afford more then you think. Once future rental income and deductions are included.
If your income is lower, possibly not the right stage to be purchasing again.
Yes a full application will be required.
Even if the loan is portable you would have to have a simultaneous settlement with the sale and purchase happening on the same day and borrowing the same amount.
Post NCCP you application would need to be fully assessed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Security substitutions can happen. But most banks only do it for PPORs and require same day settlements. And even then they still do updates on your pay-slips or incomes.
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