Submitting a substitute of security

A substitute of security may be required if your customer wishes to substitute an existing security property for a new property being purchased or a property already owned outright (e.g. unencumbered), so their existing home loan facility remains open.

For example, an existing home loan facility (Facility A) is secured by a property (Security 1):

• if your customer is looking to sell Security 1 and purchase a property (Security 2)
• no additional lending is required, and
• the settlement can occur on the same day for both the sale and purchase, then
• a substitute of security could occur which would result in Facility A remaining open and being secured by Security 2.

This variation is only available on home loans with a BSB starting 182. An internal refinance is required for other home loans.

Once you’ve submitted a substitute of security request to our Variations team with all supporting documents, we’ll typically assess the application within 3 business days. However, a substitute of security typically takes 28 days from application to settlement.

Your customer and their solicitor/conveyancer should take care to ensure that the settlement of both properties can take place simultaneously.

Our Variations team can assist you with your customer’s substitute of security application. To start the process, you need to:

1. Send an email to mortgagevariations@macquarie.com outlining the details of the request, detailing:
   • customer name
   • property to be sold/substituted
   • indicative settlement date (if known)
   • any other relevant information to assist the request.
2. Provide a copy of the full contract of sale for any property being purchased, or a copy of the title deed if the property is already owned by your customer
3. If the property is being sold, provide a copy of the front page of the contract of sale to confirm the sale price
4. If the mortgagor’s previous verification of identity is more than two years old (i.e. the home loan facility settled at least two years ago), provide a completed Home Loan Identification form
5. Provide supporting documents for a credit assessment to be completed (e.g. payslips).

If valuations are required, our team will order these. You don’t need to provide valuations.

All substitute of security requests are subject to a credit approval, based on our Residential Home Loans Credit Guidelines. The documents required for assessment may differ depending on the scenario. To ensure a timely turnaround, provide recent income verification documents (e.g. payslips) from your customer when submitting the application.

There may be additional considerations and documents required for the following scenarios.

Once the substitute of security has been completed, the LVR should be 80% or lower. There may also be other security property considerations, which may require a lower LVR.

If the LVR is more than 80%, a substitute of security typically isn’t possible. In this instance, you’ll need to submit a new home loan application in ApplyOnline and complete a full discharge of the existing facility and security property.