Submit a cross collateral loan

A cross collateral loan may be suitable when your client wishes to leverage equity held in an existing security property, to support additional lending of a new home loan. For example:

• An existing home loan facility (Loan 1) is secured by Property A.
• Where there is available equity in Property A, your client could use a portion of this equity to help secure Property B under a new home loan facility (Loan 2).

Considerations for cross collateral loans

• The LVR for both home loans must not exceed 80%.
• A security property can only be cross collateralised once (e.g. in the example above, Property A couldn’t be cross collateralised again on an additional home loan (Loan 3) to help secure Property C).
• Both loans must have at least one borrower in common, including an individual as a director of a company or trust loan.
• Additional lending post-settlement via a principal increase application isn’t possible where a security property is cross collateralised. An internal refinance would need to take place.

Your customer has an existing Macquarie home loan with a BSB starting with 182 (Loan 1) secured by Property A. 

To enable clients 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 an 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.
 

For Application 1: 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. If you need to add an additional security property (Property 2), select +Security and note the ‘Type of Security’ as a Registered Mortgage.

Your customer has an existing home loan with Macquarie, although it has a BSB starting with 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 clients to leverage equity in Property A via a cross-collateral structure:

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

For Application 1: Refinance loan

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 and settled 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?’.