New ANZ switch process
- Thread starter tobe
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Crap, I'm really sorry to hear this. I was hoping they were starting to apply a 'reasonable' approach to lending.
I had one of these done about 12-18 months ago. Seemed easy enough. Filled out the form and waited. And waited. Anz lost the form twice and by the time they assessed the application the I/O period had ceased. They basically said bad luck to having to pay principle repayments in the interim. Mine was originally an lmi de?l but the let it through. Only for 2 years I/O though instead of the 5 requested. So I guess I'm up for more fun in the not too distant future once the 2 years is up.
Ok, it went something like this......
Last Friday (14/3), I went in for my appointment. Told them the fixed interest rate term i wanted. They checked to see if the loan was previously issued with LMI. It wasn't. That was it. No forms, nothing to sign, no pay slips or anything else required to be submitted.
Today, (18/3) confirmed via email that the rate is locked in and variation letter is in the post.
Hi All,
I approached ANZ Branch early January to do paperwork as my original fixed rate was expiring 22nd January,I now split into 3 sep loans as they were all in one and fixed them IO over 2 years I fitted their non critical so all went well on 23rd Jan all done .I am going to have to pay a small fee to uncross them and the manager has told me no re application needs to be done I will do this at end of new term.
I approached ANZ Branch early January to do paperwork as my original fixed rate was expiring 22nd January,I now split into 3 sep loans as they were all in one and fixed them IO over 2 years I fitted their non critical so all went well on 23rd Jan all done .I am going to have to pay a small fee to uncross them and the manager has told me no re application needs to be done I will do this at end of new term.
I thought I would give my experience a bump - and it hasn't been a good one. After 7 weeks of chasing, providing my PSF (Position of Financial Statement), scanning docs, slips etc from abroad - I have been rejected due to insufficient income. My payments on the property concerned will go from $3,700 a month as a P&I to $3,100 a month as an I/O, and still I have an apparent serviceability issue despite:
- my gross income being higher as an expat OS than it ever was in Australia
- my net income being higher as an expat OS than it ever was in Australia (15% personal tax rate in Mauritius)
- IP #1 is cash flow positive
- no credit card debt
- no personal loans, store cards, car loans = $0
- Uncommitted monthly income larger than the required payment if the I/O loan ever reverts back to P&I (as they mentioned in their email as their rationale)
Completely at a loss, and have asked for the break fees.
Am I being unreasonable?
What currency are you being paid in?
ANZs standard policy on how foreign income is dealt with is very harsh and in my option mathematically unfair as it doesn't actually reflect their stated reasoning behind the policy. It can make them a bad choice for expat loans.
That said, I finished submitting an expat loan with ANZ about 30 minutes ago.
Their position can be negotiated but the policies need to be well understood and argued, then translated properly into their serviceability calculator; which is something that's rarely understood by most people in lending.
That said, I finished submitting an expat loan with ANZ about 30 minutes ago.
Their position can be negotiated but the policies need to be well understood and argued, then translated properly into their serviceability calculator; which is something that's rarely understood by most people in lending.
Yeah they like to do things like:
1) take 20% off the overseas job incomes.
2) then apply tax at Australian rates .
3) then take 20% off the rental income.
4) and then assess the loan repayments at P&I over a shorter term
5) at higher than actual %'s even if fixing.
Lots of buffers in their model! All for logical reasons but added all together the cumulative effect makes a strong borrowing capacity weak / modest.
As always not all lenders have the same policies.
1) take 20% off the overseas job incomes.
2) then apply tax at Australian rates .
3) then take 20% off the rental income.
4) and then assess the loan repayments at P&I over a shorter term
5) at higher than actual %'s even if fixing.
Lots of buffers in their model! All for logical reasons but added all together the cumulative effect makes a strong borrowing capacity weak / modest.
As always not all lenders have the same policies.
re the switch side...
LMI deals are painful to do - we just settled a switch from P&I to I/O for an investment property which took them over 2 weeks to process
The I/O to I/O rollover without LMI deemed non credit critical we can get done same day as it just gets signed off.
Apparently there is only one person who does all of the credit critical switches for the bank for australia hence the massive delays. If true you'd think anz would have a better setup.
BDM for ANZ advises that in all cases do not use the branch and use broker side as he cant escalate if in the branch network.
LMI deals are painful to do - we just settled a switch from P&I to I/O for an investment property which took them over 2 weeks to process
The I/O to I/O rollover without LMI deemed non credit critical we can get done same day as it just gets signed off.
Apparently there is only one person who does all of the credit critical switches for the bank for australia hence the massive delays. If true you'd think anz would have a better setup.
BDM for ANZ advises that in all cases do not use the branch and use broker side as he cant escalate if in the branch network.
utter stupidity hey? they should switch on this basis alone
I applied through my broker to change from P&I to IO mid last week. I was very concerned with doing this previously due to full application consequences, including valuation etc.
It was as simple as a single piece of paper (that I saw, it may have been a little more complex for my broker), and was done within a week.
They didn't even need the request to come from the broker that originally set the loan up.
Impressed. Very impressed.
It was as simple as a single piece of paper (that I saw, it may have been a little more complex for my broker), and was done within a week.
They didn't even need the request to come from the broker that originally set the loan up.
Impressed. Very impressed.
6 years ago? Should be off by now?
Not with ANZ. I call them the elephant bank, they don't forget.
It would have been picked up in their system not the credit file.
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