Question for the brokers...

E

Electro

Hi all,

I'm in a bit of a predicament and need some advice.

Basically I've got a loan of approx 490k on my PPR with NAB on a choice package and IO 5 years. I initially got the loan through a broker just under 2 years ago and getting the IO option was not an issue.

Now, I want to split the loan and fix a portion of it for 3 years and so I had to speak to their broker loans department. The guy I spoke to said that the only way to get this done was to convert the loan into P&I. I said this was not an option and asked why I had to and he said because it's a PPR not Investment and this is the only way that he can do it. He said that I shouldn't have been allowed to get IO option in the first place. I think this is complete crap and I told him I'm going to have to look for another lender then.

Is there anyway of getting this through? Will a broker have more leverage?

Are other lenders doing this?

What other options do I have?

Thanks in advance
 
I can't imagine why they can't simply split the existing loan and do what you want. The problem is that NAB doesn't really deal with brokers very well, most brokers prefer to put loans through HomeSide (the broker section of NAB).

The couple of loans that I have written with NAB, it has been difficult to get follow up service from them, but I can assure that what you're experiencing is not common practice for most lenders. We generally only use NAB for very specific reasons because of this.

You may get better luck if you contact the broker who set up the loan originally to try help you.
 
NAB allows interest only for PPR so go back through the broker that did the loan.
Electro said:
Hi all,

I'm in a bit of a predicament and need some advice.

Basically I've got a loan of approx 490k on my PPR with NAB on a choice package and IO 5 years. I initially got the loan through a broker just under 2 years ago and getting the IO option was not an issue.

Now, I want to split the loan and fix a portion of it for 3 years and so I had to speak to their broker loans department. The guy I spoke to said that the only way to get this done was to convert the loan into P&I. I said this was not an option and asked why I had to and he said because it's a PPR not Investment and this is the only way that he can do it. He said that I shouldn't have been allowed to get IO option in the first place. I think this is complete crap and I told him I'm going to have to look for another lender then.

Is there anyway of getting this through? Will a broker have more leverage?

Are other lenders doing this?

What other options do I have?

Thanks in advance
Click to expand...
 
What you have been told is rubbish. Why didnt you contact the broker that set it up. He would be able to arrange this easily
 
Ew NAB Direct. No thank you. Get your broker to arrange it for you otherwise do a refinance with a lender like CBA that offers a $700 rebate to cover your refinance costs.
 
Thanks for the replies. I guess there are a few things:

1. I wanted to check if there was indeed an new official rule or if they're just trying to minimize their risk, generally speaking (or just be stupid).

2. I honestly thought this would be pretty straight forward. Hence, me not contacting my broker in the first place. I'll probably just give him a call but I think he left loan market and started up his own business - Would this affect the situation and/or his ability to do this for me? For my info, will he get paid for a variation of loan (just so I know how much incentive he would have to act)?

3. Can a different broker act on my behalf?

4. Technically, as of the end of this month I am unemployed due to redundancy and so I don't really want to "rock the boat" so to speak, while I'm between positions. I've got a pretty good severance package and I'm not worried about finding a new position, however, I don't think NAB or another lender would share my optimism .
 
Electro said:
1. I wanted to check if there was indeed an new official rule or if they're just trying to minimize their risk, generally speaking (or just be stupid).
Click to expand...

NAB has this P&I policy on PPORs sometimes which is really annoying and why I avoid them personally (Among other things).

2. I honestly thought this would be pretty straight forward. Hence, me not contacting my broker in the first place. I'll probably just give him a call but I think he left loan market and started up his own business - Would this affect the situation and/or his ability to do this for me? For my info, will he get paid for a variation of loan (just so I know how much incentive he would have to act)
Click to expand...

It won't affect your situation. He doesn't get paid for varying the loan unless he gets more money out for you.

3. Can a different broker act on my behalf?
Click to expand...

Yes.

4. Technically, as of the end of this month I am unemployed due to redundancy and so I don't really want to "rock the boat" so to speak, while I'm between positions. I've got a pretty good severance package and I'm not worried about finding a new position, however, I don't think NAB or another lender would share my optimism .
Click to expand...

Better be careful then.
 
I am with NAB and almost finished restructure of my loan with them. (simple split of loan into IO + P&I with offset)

it is very/extfemly hard to deal with them ! it took me 3 months to get what i want.
multiple issues: what is IO what is P+I and what amounf,what rate applies to each of them, cant use same offset account, etc. they have no idea about loan structure at all. i wish i never stafted this process but it should be done.
 
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