Substitution of security!

[LesleyAnne]

Prior to the sale of my PPOR I met with my broker to discuss holding my borrowing capacity open for a short period of time until I purchased another property. I have now found out that I will need to declare my income again with the substitution of security with no additional borrowings associated with the new purchase. I have held the loan with CBA for several years and have paid down 2 thirds of the loan over the last 2 years.

I resigned from my employment a month ago to ready my house for sale, sell it myself etc, look for investment ops and have an OS trip to see my sister. Now I find myself possibly without the ability to retain the current loan.

A bit of a pickle and it will certainly change my game plan!

 

[Rolf Latham]

last week when we did a CBA port income wasnt an issue

LVR and repayment history was all, so maybe something has changed ?

ta
rolf

 

[LesleyAnne]

Thanks Rolf.

Yes, my broker wasn't aware of it until he was organising the 2 docs to keep both my loan and loc open. He's sent off an email to clarify saying that my income had changed to the original loan which I'm not sure was the right thing to do as I think that they will see this as a red flag. Will see what transpires!

 

[Brady]

Security substitution doesn't involve looking at your income with CBA. It's solely reliant on acceptable LVR. I suggest you speak with someone who has a better understanding of security substitutions with CBA, not sure why he would even mention your income. One of the reason you do a security substitution is because you don't want to go through the application process, which could be due to income changes etc.

 

[LesleyAnne]

Maybe things have changed.

I've just had a chat with my broker. He did not mention my details in the inquiry to CBA just a scenario! Phew! The docs do request a statement of income, so my broker is finding out whether supporting docs are required. At this stage I've not put an offer on another property the docs were to keep the loan open until I do. I asked my broker if it would make any difference if I was not holding the loan open but purchasing straight away and he said no!

 

[Brady]

Maybe things have changed.

I've just had a chat with my broker. He did not mention my details in the inquiry to CBA just a scenario! Phew! The docs do request a statement of income, so my broker is finding out whether supporting docs are required. At this stage I've not put an offer on another property the docs were to keep the loan open until I do. I asked my broker if it would make any difference if I was not holding the loan open but purchasing straight away and he said no!

Not sure what document you have infront of you. Document I'm looking at doesn't have any spot for income details.... 'HOME LOAN/INVESTMENT HOME LOAN PORTABILITY'

You will also need to complete a 'DISCHARGE/REFINANCE AUTHORITY' as well to discharge the existing property but this document also doesn't require income details.

Are you also requesting to increase borrowings?

 

[LesleyAnne]

I don't have the forms in front of me. I will message my broker with the 2 documents that you have, thanks Brady.

No I am not asking for any increase in borrowings.