LOC Top Up

[373au]

Hi All

I have been trying increase the limit on one of my LOC's but have been knocked back.

Just to give some details, My PPoR loan has $35k in redraw, I want to give this to the bank & increase my investment LOC by $35k.
They have knocked me back saying my servicabilty is at its limit. My arguement is I am not increasing my overall loan amount, as my PPor loan will reduce by $35k & the LOC go up by $35K so there is not overall increase. My loans manager told me that CBA has again tightened their loan criteria & work all loans out at a 8% interest rate now. Even with me having a great credit history & accumilating this redraw amount in teh last 12 months there is even another $10k in the offset account on my PPoR loan. Any brokers have any suggestions? I deperately want this increased LOC. I currently have all my loans with CBA but am willing to move some if I have too.

Spud

 

[Rolf Latham]

Hiya Spud

A strategic move could be to extract a property so u can get the money you want.

CBA isnt known for its overly generous serviceability model, though it does have some nice credit niches.

Speak with a broker to see how if its possible and what the best structure may be to move forward.

My gut feel is that if CBA has said no, you still have oodles of serviceability if you spread the love around

ta
rolf