Non-Resident Mortgage Restructure Query

[GeordieKiwi]

Hi guys,

Apologies in advance as I know I won't explain this very well.

I am a non-resident with my residency visa in process. I have two properties with Westpac (am assuming they are cross-collateralized) and would like to shift the rental to another provider, leaving 20% equity on my home with Westpac (who aren't lending to non-residents). So my question is around whether Westpac would class that as new lending or a reduction in overall lending (which I believe is fine)?

Basic numbers below:

Current
Main House Value >1m
Mortgage 500
Rental Value 700
Mortgage 700

Wanted
Main House Value >1m
Mortgage 800

Reduction in total Westpac mortgage 400

[Anthonyacat]

I can't understand why you would want to increase the debt on your personal home - most people are more interested in deleveraging their homes.

But I don't think you'd have much trouble getting this done. Go through a broker to be sure. Westpac may object to losing the security over your rental; as you say the overall LVR at the moment is about 70% (1.2m / 1.7m) where it'll be 80% if you get your way.

[GeordieKiwi]

Thanks Anthony. Just toying with the idea at the moment as I am limited flexibility wise with Westpac.

[brokerman]

As an aside a lot of Banks now insist you come over here to open account and sign loan docs......