Submitting a cross-collateral loan application

This scenario is for your customer who has an existing Macquarie home loan with a BSB starting with 182 (Loan 1) secured by Property A. 

To enable the customer to leverage equity in Property A via a cross-collateral structure, Macquarie will register a second registered mortgage against it.

To cross-collateralise Property A, in ApplyOnline you only need to submit one application for a new home loan (Loan 2) and follow the steps below to ensure the property you wish to cross-collateralise is identified accurately.
 

Submitting application for Loan 2: New cross-collateral loan

1. In the Securities tab, under Type of security, mark the existing property security (Property A) as a ‘2nd Registered Mortgage’ 
2. In the Existing mortgages section, capture the existing loan with BSB 182-182 and the account number of the existing loan account (Loan 1).
3. To add an additional security property (Property 2), select +Security and note the ‘Type of Security’ as a Registered Mortgage.

This scenario is for your customer who has an existing home loan with Macquarie, although it has a BSB starting 183 (Loan 1) secured by Property A. 

Cross-collateralisation is not possible on our home loans with BSBs starting with 183. Therefore, to enable your customers to leverage equity in Property A via a cross-collateral structure, you'll need to submit two applications:

• Loan 1 (via ‘Application 1’) with Property A will need to be internally refinanced and settled, and
• Loan 2 (via ‘Application 2’) can be submitted simultaneously in ApplyOnline and once Loan 1 has settled, Macquarie will register a second registered mortgage against Property A.
   

For Application 1: Internally refinance loan with BSB starting 183

Follow the below instructions to ensure you complete ApplyOnline correctly for the first application:

1. In the Application tab, select Yes for the ‘Multi-Part Application’
2. In the Securities tab, under the ‘Type of security’: 
   • capture the existing security property (Property A), as a Registered Mortgage 
   • set the transaction type as Refinancing
   • as it's a refinance application, select Yes for ‘Clearing from this loan?’, and 
   • for investment properties, select Yes for ‘Is interest tax deductible?’, and
   • add the Existing Mortgage details noting BSB as 183-183 and the account number. 
     
     

For Application 2: New cross-collateral loan

1. In the Application tab, select Yes for the ‘Multi-Part Application’ and enter the refinance loan Application ID (APP-XXXXX). This ensures both applications can be credit assessed simultaneously.    
2. In the Securities tab, under ‘Type of security’: 
   • enter the refinance loan’s security property (Property A) as a 2nd Registered Mortgage.
3. In the Existing Mortgage section:
   • enter the security property details of Property A, the previously internally refinanced property
   • select Macquarie as the ‘Creditor’
   • select No for ‘Clearing from this loan?’
   • for investment properties, select Yes for ‘Is interest tax deductible?’.

This scenario is when your customer is new to Macquarie and has an existing home loan with another lender, Loan 1 secured by Property A. This home loan will be refinanced to Macquarie. They’re also wishing to proceed with another home loan (Loan 2), using the equity from Property A to secure Property B. 

To enable customers to leverage equity in Property A via a cross-collateral structure:

• Loan 1 (via ‘Application 1’) with Property A will need to be refinanced to Macquarie, and simultaneously
• Loan 2 (via ‘Application 2’) can be submitted in ApplyOnline as if Loan 1 has settled. This application:
  • will register a second registered mortgage by Macquarie against Property A and,
  • include Property B as an additional security property.
• Loan 1 and Loan 2 should be submitted together as a multiple loan application and will be assessed at the same time.
   

For Application 1: Refinance loan to Macquarie

1. In the Application tab, select Yes for the ‘Multi-Part Application’.
2. In the Securities tab, under the ‘Type of security’: 
   • enter the existing security property (Property A), as a Registered Mortgage 
   • set the transaction type as Refinancing
   • as it's a refinance application, select Yes for ‘Clearing from this loan?’, and 
   • for investment properties, select Yes for ‘Is interest tax deductible?’, and
   • add the Existing Mortgage details noting the other lender’s BSB and the account number.
      

For Application 2: New cross-collateral loan

1. In the Application tab, select Yes for the ‘Multi-Part Application’ and enter the refinance loan Application ID (APP-XXXXX). This ensures both applications can be credit assessed and settled simultaneously.    
2. In the Securities tab, under ‘Type of security’: 
   • enter the refinance loan security property (Property A) as a 2nd Registered Mortgage.
3. In the Existing Mortgage section:
   • enter the security property details of Property A, the previously refinanced property
   • select Macquarie as the ‘Creditor’
   • for investment properties, select Yes for ‘Is interest tax deductible?’
   • for ‘Limit’ and ‘Current Balance’ it should reflect the amounts applied for in Application 1, and
   • select No for ‘Clearing from this loan?’.