How easy is it to get a Line of Credit from NAB?

[cadence]

Hi guys

I've only ever refinanced to buy new properties and ended up with offsets against loan accounts.

I'm in the process of renovating an IP, and I would like to have it revalued post-renovation and refinance to the higher amount with the extra funds sitting in an LoC. I want the LoC arrangement as I don't really have any urgency to buy now and would prefer to wait for the right opportunity to invest in the next property (whenever that might be).

I just wanted to know whether applying for a refinance with LoC is the exact same process as when I ask NAB for a refinance to purchase another property? Is LoC harder to obtain than the latter eg: do I need to have greater income / serviceability to get the LoC?

Thank you in advance.

 

[Jamie M]

Same rules apply - they look at your serviceability, employment history, LVR and the security type. No different from a refi really - accept it should be a bit quicker as it's an internal application rather than an external refi from another lender.

Cheers

Jamie

 

[cadence]

that's great
thanks Jamie!

 

[Marty McDonald]

Hi Cadence,

One possible difference is that you wont have the future rental income from the property you will be eventually be buying to take into account. This means sometimes a LOC or cash out before the next property is located can be a bit hard if serviceability is tight.

Also nab can also be a bit finny about LOC's from my experience, they make you sign a declaration as to your understanding of the risks involved in investing.

 

[cadence]

oh yes that makes sense! thanks Marty! Good to know!
cheers