Security substitution

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grant7
Member
@grant7
Join Date: 2006
Post Count: 59
February 14, 2006 - 7:49 am
Hi,
Does anyone know if lenders in general allow security substition on a loan (assuming no increase in LVRs) IF you dont own or have an interest in the new security being offered.??
Ie. a third party provides security for my existing debt – thereby freeing up my existing property. Dont worry, I will pay the third party well for there services…
Thanks
Grant
Mortgageman
Participant
@mortgageman
Join Date: 2004
Post Count: 164
February 15, 2006 - 12:27 am
Hi Grant,
It is possible to transfer security, but not to security in the name of a third party with the possible exception of if the third party is your direct family.
Regards,
Cameron Perry
Finance Consultant
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
Anitamarshall
Participant
@anitamarshall
Join Date: 2005
Post Count: 79
February 15, 2006 - 7:24 am
Difficult to answer without full details but there is such a thing as “Substitute of Security” the new security must be in the same name as existing security and be of equal or more value. if not then it needs to be submitted to existing lender as total new deal.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
[email protected]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 15, 2006 - 10:00 am
Grant has already been advised by CBA that they will do this substituation of security although the new security is in different names.
Must admit it is a new one on me but what do i now.
Richard Taylor
Residential & Commercial Finance Broker
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]
Richard Taylor | Australia's leading private lender