Warning: Suncorp not liking Granny Flats?

I got a call from the broker today to explain why my loan with Suncorp was declined (first time I've ever been declined).

Brief details:
Existing loan with Suncorp under my wifes name -> Top up / equity release
Existing loan with another bank under my name -> Refinance to suncorp with equity release.
(No crossing - 1 is held in my name, 1 is held in my wifes name, no joint tenants)

Both properties put up for security are houses with granny flats on them.

Apparently Suncorp's lending view is that there is a glut of Granny flats in NSW rules may change. As a result, they are discarding the rental income from the granny flat as part of the serviceability calculations - as because of the size of the loans.

They've chosen to ignore that the one of the granny flats has been rented out at a similar rate since 2009, while the other has been rented out for the entire 2014.

Can anyone verify if this is all true?

Suncorp said they would consider (not guarantee) approving the loan if i crossed... you can probably guess my broker's response and my response to that :D
ANZ bankwest and sun arent real good with grannies at higher lvrs

ANZ i think max 70 etc


Max 80% if you don't include the granny flat income for the security, but other properties acceptable.

neK: best to get your broker to put the property with a lender who is more amenable to dual occ, there is *plenty* of good options out there.
Suncorp is one of the most conservative lenders to deal with as an investor. About the only thing going for them was their recent super cheap deal (which has since expired and caused their service levels to be the worst in the industry).
I have the poops with Suncorp too. Any excuse to decline a loan at the moment. Existing clients snookered in with them on a granny flat deal with LMI. No problem doing it 2 years ago at 95% now declined a 20K top up when the LVR has gone down to 85%. A***holes.
The loan was based on 80% LMI.

Interesting part is that the original loan my wife had, we borrowed 80%, then got a construction loan for the granny flat - that was 2 years ago and they happily accepted the projected rental income back then.

Now that its all completed and fully rented out for over a year they decline me.

My broker is thinking of switching me to NAB or Macquarie. But he'll do some quick research first before deciding on who. I'm guessing both of those guys are are ok.

Thanks guys for confirming the info... rather disappointed with Suncorp "The Genuine Alternative" but oh well, life goes on. :)
My broker is thinking of switching me to NAB or Macquarie. But he'll do some quick research first before deciding on who. I'm guessing both of those guys are are ok.

Both are pretty competitive and have their niche (as has been explained about 1 billion times of late).

The Suncorp deal was the sort that was too good to pass up and worth taking a punt on. Great for set and forget. Cheap enough that it's worth trying for but make sure you've got a backup plan.
I guess the backup plan for me was the fact I didn't actually need it right away.

It was a equity release with the view of being ready to pounce at a moments notice.

On another note, is the way Suncorp are looking at granny flats related to the tightening the credit policy for resi lends? Or is it just Suncorp being Suncorp and not realising that what happens in QLD doesn't necessarily apply for other states

(I remember when i applied for the construction loan, they needed proof from the council that granny flats in NSW could be rented out - I sent them the NSW legislation instead).
Suncorp accepts granny flat income as long as it's rented through an agent...Private is ok as well as long as declared on your tax returns- however they will only take 60% of the GF income rather than 80%.....this was recently as well - During the suncorp 4.69% promo in Nov/Dec 14- 2 Deal both deals at 80% and gf income was accepted ...Suncorp accepts Dual income- and duplex, so does QBE! so GF is more than fine.

Get your broker to quote the credit policy to the BDM...it's in one of the suncorp's policy book- some of suncorp's credit guys are so use to the clean PPOR deals they forget the "investors deals sometimes..." Put them back in place :p

The only time the GF income is NOT acceptable is for a PPOR with a GF at the back.

P.s Suncorp overall" servicing" is very tight though....

The most common knock back with suncorp is "servicing" if you say your using the equity for a future IP...they will need to make sure you serine that "future" loan as well on their calculator even if you dont give them that new loan...sigh :eek:
Interesting Mick. Mine is rented through an agent. Rental statements were all provided. Maybe it was scrutinised more due to the combined size of the loan ($1.96m) :confused:
^^^ I am finding they have a low risk tolerance in general so even if a deal is within policy they will find a reason to decline if they don't "like" it. Had a few like that over the last 2 years.