ANZ Lo Doc 60

We currently have borrowings up to 80% on another property with ANZ. We want to apply for Lo Doc 60 for the new place.

Does anyone know if you apply for ANZ Lo Doc 60, does this mean your entire existing portfolio with ANZ must also be 60% LVR or does it only apply to the new loan?

Thanks!
 
The original lend on that IP loan was 6 or so years ago - full doc.

Our current mortgage was 7 years ago full doc - we are selling and buying a new place. The mortgage on the new place we have to go Lo Doc 60 if we want to stay with ANZ.
 
Why do you wish to stay with ANZ?

Are you leaving the Full Doc 80% alone?

I take it you are now self-employed. You can go elsewhere and get a Lo Doc for 80%.

Regards JO
 
The biggest problem with this scenario is when people apply for a full doc loan then apply for a lo doc 60 a short period of time later. If the financial information on the lo doc 60 is consistent with the full doc application there's no problem, but if it's not consistent eyebrows get raised and you find your self with requests for full disclosure.

If you last applied 7 years ago, this wouldn't be an issue. Your entire portfolio does not need to be reassessed, unless you've cross-collateralised everything (unlikely in this case).
 
I have been with ANZ for many many years, dealing with the same two branch managers. I have enjoyed excellent service and great banking for 10 years. We are on a nicely dicounted rate, 0.85%, that we will possibly lose if we move our PPOR loan away to another lender. I don't want to change banks if I can help, particularly for our PPOR.

Going forward, happy to utilise other lenders for IP's.

There is a LOC that is x-coll against this and another property. There is enough equity to move it across to the IP which we are going to do. Could this be an issue?

What happens if they do request full disclosure?
 
If they request full disclosure you won't be Lo-Doc'ing it. As mentioned already, if you current loans are as old as that you shouldn't have too many issues as long as you meet their Lo-Doc criteria.


Regards
Steve
 
We did re-fi a few times to draw down equity. Our income has changed and they know that. Most recent would have been three years agao.

Our business and personal banking is with them as well. However we do have other prroperty and banking with other banks.

If they request full disclosre and we decline, or they decline due to non-disclosure for whatever reason, can this effect the current lending we have with them? Could they recall existing loans?
 
We did re-fi a few times to draw down equity. Our income has changed and they know that. Most recent would have been three years agao.

Our business and personal banking is with them as well. However we do have other prroperty and banking with other banks.

If they request full disclosre and we decline, or they decline due to non-disclosure for whatever reason, can this effect the current lending we have with them? Could they recall existing loans?

If they ask for full disclosure they are in effect declining the application based on the LO-Doc criteria. You current loans won't be affected. It would mean either providing financials to coninue with them or approaching a different lender for the facility.
Have the ANZ managers not been able to explain this to you?
 
We have only taken the first steps today with regard to enquiries about how feasible this all is. Hence my original question in this post.

We have an appt with a lending manager this week. I presume we will get more into all this then.
 
You have your business accounts and PPOR and IP mortgage lending with the same lender you are going to ask to approve a lo doc application ?

I dont know the details here, but generally this could be construed as doing whats convenient rather than whats right, and this could come and bite you.

Even on full doc we tend to discourage PPOR mortgage with the same lender as ones business accounts.

Having said that, I have seen some interesting things happen at retail with most lenders, so its very likely you wont have any problems at all.


ta
rolf
 
You have your business accounts and PPOR and IP mortgage lending with the same lender you are going to ask to approve a lo doc application ?

Yes and this is one of my concerns.

I dont know the details here, but generally this could be construed as doing whats convenient rather than whats right, and this could come and bite you.

Could be. How do we determine what is "right"? They give us great service and a favorable rate.

Even on full doc we tend to discourage PPOR mortgage with the same lender as ones business accounts.

Why?

Thanks for any info you can give me!
 
Even on full doc we tend to discourage PPOR mortgage with the same lender as ones business accounts.

Why?

I believe it is due to the income people declare on the LD form is often 'overestimated.' Hence the lenders pulling the pin and reducing LVRs on the low doc, or requesting more evidence such as BAS, trading accounts etc.

and why does it have to go low doc to begin with?
 
Last edited:
My husband works for himself and his ABN has not be active again for two years yet (after a 5 year break) plus some of our property and associated income is overseas so it is discounted in terms of local serviceability.
 
Hiya Melissa

The Asset protection folk that our clients have used would have a cardiac with a business owner having their business facilities and PPOR/investment mortgages with the same place.

When your business goes pear shaped, the first folk to know about it is your mortgagee. You could call the Asset protection crowd paranoid, but that concpet does make a lot of sense to me. There is rarely a real downside to separating your business banking from your personal and investment banking.

In one of your earlier posts, you asked how does one differentiate between convenience and doing whats "right". There is no clear line there, its up to the person whose banking is involved. Too often I see a large risk "trade off" for a few pts of interest rate, some fee reductions, and sometimes simply "cant be bothered to change all the direct debits" getting in the way. What we all forget is that when times are ok, lenders love us, when times get hard, well................... we are only as good as your last repayment.


ta
rolf

ta
rolf
 
What you are saying makes a lot of sense.

After such good service with ANZ, and average service in most dealings with other banks, I find it hard to move away from them.

Going forward I am happy to use other lenders for new aquisitions as we have hit a ceiling at ANZ anyway and we do need to diversify lenders.

I would just like to keep the PPOR with them. If ANZ won't come to the party, my second choice is Westpac at this stage.
 
hi Melissa,

You have had some great advice here.

You'll find Westpac will also give you a discount on their Standard Variable. Although it may not be the 0.85% you have had, the difference should be minimal when considering the advantages explained above.

Good Luck with it all,

Regards JO
 
>>>What we all forget is that when times are ok, lenders love us, when times >>>get hard, well................... we are only as good as your last repayment.

Love it! 10 Years at Westpac, can't be anymore correct!

Don't think for a moment that Banks care about you, its a system, like a big machine with systems and procedures etc etc.

You fit with the system and all is ok, if you don't then you don't.

Kind Regards,

Alex
 
Top