What are the reasons for swapping security property?
There are many reasons customers consider making this change. You may consider swapping security if any of the following apply to you:
You are selling your current home to buy a new one
It’s an alternative to refinancing your loan
You want to switch and use an investment property as security for a home loan
You are relocating and may require using the new property as security.
We'll reassess the new property
When you make a change to the security property, the lender will often review to ensure the new property provides adequate security for the loan.
What are the costs and fees?
Making this adjustment can incur additional costs or fees. when you swap your security property, you may need to pay one or several of the following:
Consent fee
Valuation fees
Administrative fees
What information should I prepare before swapping security?
Your client services representative will know what information is required. However, if you would like to streamline the process, have some of the following information available:
Your loan number
What property is being discharged
Your contract of sale if applicable
Does swapping security property affect your loan terms?
You may need to reduce your loan limit as a result of swapping security which can can impact your monthly loan repayments.
Depending on the value, location or type of security you are using as a replacement you may also need to fund some of the reduction to your loan limit.
How do you get started?
Start by understanding the terms and conditions related to changing security on your loan. Next, contact our Client Services team, we’ll be happy to explain the different scenarios that might apply to your situation.
What’s next on your loan journey?
Your loan journey doesn’t end here. Explore these resources to take the next step with confidence.
How does reducing your loan limit affect your loan?
A loan limit is the maximum amount a lender allows you to borrow based on several factors like your financial circumstances, the credit assessment undertaken, and your financial history.
What’s involved in subdividing a property?
Property subdivision involves dividing a single title (with or without property on it) into two or more blocks of land (two or more titles).
What is an interest-only loan?
With an interest-only loan, you can nominate a set period where you only pay the interest on the amount you’ve borrowed.