Hi, Am in a pickle and need some help.
I want a partial discharge for a block of land held by Homeside as security (we subdivided a property). One other security would remain with them, leaving a short fall of about $11,000 required to bring LVR back to 89.5%.
I had planned to refinance this $11,000 shortfall to another lender as cashflow is tight right now. But now Homeside want me to fill out a Customer Position Statement and provide updated income/asset info. As my income has reduced slightly, and it was tough enough last time getting over the line for a 90% loan, I don't want them to do another serviceability check on me, and another hit on my credit file (It is quite clean, just don't want unnecessary hits).
2 Questions are raised:
1. Can I avoid a serviceability check by NOT REFINANCING, but instead reducing the limit on loan by $11,000 and getting a partial discharge. Cash is short at the moment, but if necessary I could scrounge up $11,000. Will they still insist on checking my serviceability and credit file if no refinance is involved?
2. If I cannot avoid a serviceability check, OR if I stick with Refinance Plan, and they decide my serviceability is NOT good enough to maintain the existing 90% loan, WHAT CAN THEY DO??? Not recall the loan, surely??. I have never missed a payment. Maybe they would refuse to release my security - but how can they justify this if the remaining security they hold is enough to cover a 90% LVR after I pay the shortfall??
Can the Banking Ombudsman help?
Normally one could take this to their broker, but our Homeside broker has been pretty useless to be honest, Was quite helpful and interested when getting the loan, but since then it all seems to hard, so am loathe to seek his help. Am also loathe to ask the Homeside Discharge Section these questions.
Another option is to refinance the whole darn lot to another lender, but I think I signed something to pay the broker's claw back fee and the loan is still under 1 year old, so would prefer to avoid that too (would also have wasted the LMI already paid). Not a pleasant option at all.
HELP. This should have been simple, but its turning into a tin of worms.
I really need some advice from an impartial expert.
Thanks
CAMI
I want a partial discharge for a block of land held by Homeside as security (we subdivided a property). One other security would remain with them, leaving a short fall of about $11,000 required to bring LVR back to 89.5%.
I had planned to refinance this $11,000 shortfall to another lender as cashflow is tight right now. But now Homeside want me to fill out a Customer Position Statement and provide updated income/asset info. As my income has reduced slightly, and it was tough enough last time getting over the line for a 90% loan, I don't want them to do another serviceability check on me, and another hit on my credit file (It is quite clean, just don't want unnecessary hits).
2 Questions are raised:
1. Can I avoid a serviceability check by NOT REFINANCING, but instead reducing the limit on loan by $11,000 and getting a partial discharge. Cash is short at the moment, but if necessary I could scrounge up $11,000. Will they still insist on checking my serviceability and credit file if no refinance is involved?
2. If I cannot avoid a serviceability check, OR if I stick with Refinance Plan, and they decide my serviceability is NOT good enough to maintain the existing 90% loan, WHAT CAN THEY DO??? Not recall the loan, surely??. I have never missed a payment. Maybe they would refuse to release my security - but how can they justify this if the remaining security they hold is enough to cover a 90% LVR after I pay the shortfall??
Can the Banking Ombudsman help?
Normally one could take this to their broker, but our Homeside broker has been pretty useless to be honest, Was quite helpful and interested when getting the loan, but since then it all seems to hard, so am loathe to seek his help. Am also loathe to ask the Homeside Discharge Section these questions.
Another option is to refinance the whole darn lot to another lender, but I think I signed something to pay the broker's claw back fee and the loan is still under 1 year old, so would prefer to avoid that too (would also have wasted the LMI already paid). Not a pleasant option at all.
HELP. This should have been simple, but its turning into a tin of worms.
I really need some advice from an impartial expert.
Thanks
CAMI