Refinancing and potential portfolio review - strategy?

[newbyvest85]

Hi there,

I have 2 properties secured with ANZ - the first is about 50% LVR, while the other is at about 90% LVR, giving a combined LVR of about 75%.

I will be refinancing the 1st property to a different bank. I am doing this myself and not using a broker.

I presume I definitely need to let ANZ know that I will be refinancing now, and ask them to give me a break cost for that?

I suspect that ANZ will definitely ask me to pay down some of the property with 90% LVR - to 80% I presume? If they do not ask, do I need to remind them? And do they usually provide you with some time to pay down the LVR, or do they expect it to happen on the day the 1st property is refinanced?

Thanks!

[Frezzinghot]

Hi there,

I have 2 properties secured with ANZ - the first is about 50% LVR, while the other is at about 90% LVR, giving a combined LVR of about 75%.

I will be refinancing the 1st property to a different bank. I am doing this myself and not using a broker.

I presume I definitely need to let ANZ know that I will be refinancing now, and ask them to give me a break cost for that?

I suspect that ANZ will definitely ask me to pay down some of the property with 90% LVR - to 80% I presume? If they do not ask, do I need to remind them? And do they usually provide you with some time to pay down the LVR, or do they expect it to happen on the day the 1st property is refinanced?

Thanks!

Why are you refinancing? better rate and coming off a fixed term?

[Keithw]

Is the 90% one your residence ?
If not you may find that they want it lowered to 60% not just 80%.
at 90% you probably paid mortgage insurance when you took it out. Worth checking what happens with that now. its presence may be enough for bank to leave loan at 90% until you come to change it.

you should also check that the new lender will still do what you want with the 50%- if its investment property, the main banks will only go to 60%. Non- bank lenders are much more flexible right now.

[newbyvest85]

Thanks all for your replies.

The initial situation was because of ANZ's internal 70% across the board (regardless of Auckland vs non-Auckland) implemented in June 2016. I therefore applied for a new bank loan, and decided to move the Auckland property (50% capitalised) to the other bank, together with purchasing a new non-Auckland property. In doing so, I can access more equity. The new bank honoured the pre-approval (despite the current rule change), and will be lending 70% against Auckland property and 80% against non-Auckland property.

The 90% LVR property is not cross-securitized to my knowledge. And no, I'm not paying a Lender's Mortgage Insurance on that. And yes, I am owner-occupying this property.

1. As this is an existing Loan (and not a new one), ANZ should not really care what the other bank is doing with my other properties, and allow me to have 80% LVR, is that correct?

2. Do you generally 'rock the boat' and ask ANZ if they want to do a portfolio review, or do you wait for them to approach you?

Thanks for all your answers!