Submit a Cross Collateral Loan

If your client has an existing loan with another lender, to apply for a new loan using that existing loan’s collateral security you will need to first ensure you submit multiple applications in NextGen’s ApplyOnline.  

The first application will be to refinance the existing loan with the other lender to Macquarie along with any other changes you wish to associate with the refinance application. The subsequent application will be for the new Cross Collateral Loan where you wish to include collateral already used in the refinance application but also have different structuring requirements. Once you set up both applications in NextGen’s ApplyOnline, before you submit both applications you will need to ensure you do the following: 

For Application 1: Refinance Loan

1. Ensure you tick the ‘Multi-Part Application’.    
2. Capture the existing security collateral as a 1st Registered Mortgage and enter the details in the ‘existing mortgage(s)’ section.   

The ‘transaction’ type should be marked as ‘Refinancing’ and you will also need to select the ‘clearing from this loan’ box. You can only tick the ‘Interest Tax Deductible? Box’ where you are refinancing an investment property loan. 
 

For Application 2: New Cross Collateral Loan

1. Tick the ‘Multi-Part Application’ and enter the refinance loan ‘Application ID’. This ensures both applications can be credit assessed at the same time and can be settled simultaneously.   
2. Enter the refinance application details also under the ‘Comments & Loan Objectives’ section. This will provide our credit team additional information in the event you forget to link the applications. 
3. Enter the refinanced loan collateral security as a 2nd registered mortgage in ‘security information’ section in the ‘security tab’.   
4. You will then be prompted to enter the existing mortgage details of the collateral security which is being refinanced in the ‘existing mortgage(s)’ section. Please ensure you select the ‘creditor’ as Macquarie and note that the ‘clearing from this loan?’ box should NOT be ticked. You also can only tick the ‘Interest Tax Deductible? Box’ when you are refinancing an investment property loan. The ‘Limit’ and ‘Current Balance’ should be the same on the Cross Collateral Loan application but not on the refinance loan application. 

Both loan applications will be assessed and settled at the same time. The Cross Collateral Loan will assume that the refinance loan and security collateral has occurred and is now with Macquarie. If the refinance loan from another lender does not proceed, the customer may no longer be eligible for the cross collateral product. A new validation in NextGen ApplyOnline will indicate the above requirement and you will not be able to proceed until the creditor name is corrected to ‘Macquarie’. However, you should keep the BSB and Account Number as per the existing loan being refinanced.  

For further information on Cross Collateral Loan applications please contact your BDM. You can also download this guide with supporting images.