Refinancing from one lender to another undergoes an assessment of affordability, and conduct of the existing loan facilities.
When a refinancing from one bank/lender to another is to take place a serviceability assessment takes place in order to ascertain the affordability of an applicant. In addition, the conduct of the loan/s being refinanced is also verified by looking at the last 3-6 months loan conduct. As a rule, a lender does not like to pick up loans conducted unsatisfactorily
Yet, a refinance of up to 75% of the value of the proposed property is permissible on a full doc basis as long as no more than 3 debts are being refinanced or consolidated with an Australian owned bank. These can include the home loan, plus 2 other debts. In this case, no statements of conduct need to be shown to the new incoming lender. Also, unlimited cash out is also permissible up to the max 75%LVR.
To qualify clients must be in same employment and residence for a minimum of 2 years, have clear credit and council/water rates notices must be paid up to date with no arrears.
For LVR between75% to 80% 3 months statements on loans are acceptable.