ANZ loan redraw question

Discussion in 'Property Finance' started by beachy, 22nd Jun, 2015.

  1. beachy

    beachy Beachy

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    Friend has ANZ loan - property in company name - paid about $80,000 off a $300,000 loan.

    He's been told he can only redraw to 80% which he was hoping to pull out equity of about $50,000, but can only do about $12,000 so not enough to use as deposit to buy another IP - do any of the brokers know if ANZ will do 90 or 95% redraw, otherwise he will have to refinance with another lender.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    I think your terminology is a bit off, but yes, ANZ will allow you to access equity to 90% of the property value. There will be some mortgage insurance to pay, but it can certainly be done.
     
  3. Watson1

    Watson1 Member

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    ANZ will allow 97% for existing customers but it isn't cheap.
     
  4. beachy

    beachy Beachy

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    Sorry, my friend said the property is in a property trust - does this make a difference?
     
  5. Watson1

    Watson1 Member

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    i would say it shouldn't be an issue with company/trusts etc.

    At the end of the day the guarantor and applicant/company have an existing ANZ relationship >6 months I think it should be fine.

    Others may be able to comment.
     
  6. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Not for an equity release though - that will be capped at 90% + LMI

    Cheers

    Jamie
     
  7. beachy

    beachy Beachy

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    Jamie, I might get my friend may give you a call to discuss
     
  8. Watson1

    Watson1 Member

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    I did a top up just last week at 97% for an ANZ existing customer.

    Only issue was that they had to keep same remaining term of original loan which decreased borrowing capacity a little for lmi crediting purposes. New top up/equity release was at 30 years.

    This wasn't under a company though.
     
  9. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    That's impressive.

    What was the purpose of the cashout? How much was the cashout portion?

    Cheers

    Jamie
     
  10. Watson1

    Watson1 Member

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    I have done it 3 times so far. Twice for cash out to pay for 10% deposit ~$50-60k equity release. Last weeks one was involved a top up of an investment property where the equity release was just under 60k. Loan was approved within 24 hours too!

    First time we thought the assessor made a mistake but found out later it is something they can do and it isn't even a policy exception as far as I am aware.
     
  11. chunho01

    chunho01 Member

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    I'm with ANZ also, looking to release equity soon. But my 'purpose' might not be as clear cut? I only wish to park the money somewhere for future IP deposit (not near future).

    Currently 90% LVR + LMI capitalised on top of it. If I maintain LVR at 90%, I can pull out $25k-ish, which is enough. My asset position and serviceability are quite healthy.

    What is the best way to approach this? (That can be approved easily) I have heard some keywords like 'split loan', 'line of credit', etc.
     
  12. Jess Peletier

    Jess Peletier Mortgage Broker, Perth

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    That shouldn't be a problem - there's no time limit to spend the equity release. No keywords required, however a split loan is a good idea regardless. :)
     
  13. Corey Batt

    Corey Batt Finance Broker

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    You shouldnt have too many problems with that chunho, the equity release just needs to be put as for future property investment use - ANZ's policy is pretty flexible with this.

    Once released you can do as you please, placing it in redraw/offset etc.