As an update. Shahin seemed to have gotten to the bottom of it.
The issue is simply the other broker set us up with the wrong lender from the start, one who has now refused to allow us to refinance to anything higher than 80 LVR. Notwithstanding that the original loan was at 90LVR and that we have excellent income, credit history and serviceability. It's their policy apparently. The ability to refinance is something that we outlined right from the start with the original broker and one that he knew was vital to us, seemed he din't care as much and seemed to have gone with this lender as he writes a lot of loan to them.
What's more disappointing is that he didn't have the guts to actually tell us himself about this stuff up, and in the process, wasted another couple of months of our time.