Combining Loans - Any implications?

[neK]

Hi,

I've got a loan with Suncorp and its split into multiple loans. The security of this loan is against IP#2

The reason why the loans are separate is

• Equity Loan with STG (secured against unrelated property): Borrowed 20% + Stamp Duty + Renovation
• Suncorp Loan #1: Borrowed 80% for IP#2 purchase
• Suncorp Loan #2: Construction Loan
• Suncorp Loan #3: Post renovation revaluation, used these proceeds to repay Equity Loan with STG.

Now I've been told if i were to refinance, each one of these loans would be subject to $350 (therefore $350x3 = $1050).

So two questions:
Question #1
Given all the loans are tied to the ONE property, can i simply combine them into a single loan?

Question #2
Are there any fees that must be payable to Suncorp if I combine them (and remain with Suncorp)

 

[Marty McDonald]

Hi,

1) yes sounds like it. all same property and purpose
2) maybe one lot of variation fee but I would push hard for just one fee not the 3. also will be a full new application probably.

 

[Peter_Tersteeg]

Their immediate brain dead response is to charge you the annual fee on a per-property basis. Both St George and Suncorp will do this if they can get away with it. I can also assure you that if they apply some thought to it they can structure the loans separately, without cross-collateralising and only charge a single annual fee.

 

[neK]

Their immediate brain dead response is to charge you the annual fee on a per-property basis. Both St George and Suncorp will do this if they can get away with it. I can also assure you that if they apply some thought to it they can structure the loans separately, without cross-collateralising and only charge a single annual fee.

Suncorp charge me only one lot of $375 per year.
Its just that if i refinance, they will charge me $350 per loan.

I'm just curious that if i consolidate the loans into one, would they hit me up for $350 per loan consolidated.

At least if they don't hit me for the fee, I know that in future, I can consolidate, then refinance and pay one lot of $350 exit fee.

 

[Peter_Tersteeg]

I've had them waive some similar fees recently, but it's been painful to get Suncorp to do this. We negotiated this on the basis that most lenders don't charge a variation fee as their annual pro-pack fee covers it. They agreed but getting them to honor this agreement was painful.

I've been reluctant to recommend Suncorp in the past (I have a long memory from the GFC), my recent experience with them doesn't make me want to change that policy.

 

[neK]

I'm a bit unsure of what to do in this particular situation

My sister in law and her husband have a loan with suncorp

200k fix, 200k variable.

They are in the process of applying for an equity release with the view of buying more investment property.

My fear is that if they apply for an equity loan with Suncorp, at some point one of them is going to accidently dip into the funds after its been partially drawn down to buy someone for personal purposes then repay it once they realise their mistake.

Now assuming they get $150k equity release, I was thinking it would be safer for them to have 1x $100k + 1x50k or even 3x50k equity loans (just to help separate the loans in case they do they above by accident).

But the $350 per loan thing bothers me.... Obviously once the loans are drawn down and the purpose are all for the same property, then i would consolidate it into one loan.... and hopefully not be forced to pay $350 per consolidation.

 

[Rolf Latham]

But the $350 per loan thing bothers me.... Obviously once the loans are drawn down and the purpose are all for the same property, then i would consolidate it into one loan.... and hopefully not be forced to pay $350 per consolidation.

forced ? nah surely its choice ?

ta
rolf

 

[Angel]

Hi Nek. Remind Suncorp that the annual package fee covers every loan with them and you shouldn't have to pay any other fees.

 

[neK]

Hi Nek. Remind Suncorp that the annual package fee covers every loan with them and you shouldn't have to pay any other fees.

The fee only applies on discharge. Its not payable while the loan is active with them.

 

[Angel]

Are you talking about refinancing with Suncorp or a different bank? Sorry, I must have misunderstood. To keep the same security but take out different loans I didn't get charged anything.

 

[neK]

Are you talking about refinancing with Suncorp or a different bank? Sorry, I must have misunderstood. To keep the same security but take out different loans I didn't get charged anything.

Current loan with Suncorp (split up into 3).

If i were to refinance to any other lender, Suncorp would charge me $350 "admin" fee for each loan that i have... even though they are all linked to the same security.

Therefore, I am wondering if I COMBINED all 3 suncorp loans into a single loan, would I be charged the $350 fee for each loan that was closed and combined. Because if they did not, then i could theoretically combine all the loans (pending it being feasible from a taxable perspective), then refinance the now single Suncorp Loan to another lender and only pay one lot of $350.

Suncorp did not charge me ANYTHING to split out multiple loans.

 

[Angel]

Hi neK

I see.

Yes, I think you could combine all three back into the one mortgage, then refinance with another lender at a later date. Be aware of other fees upon discharge. These can be titles office fees, not bank fees.

Please do not take my word, speak to an expert.

 

[Shahin_Afarin]

You can get those fees waived - just need to request it.