Submit a principal increase

Principal increase applications

A principal increase application (PIA) may be available to your clients when they have an existing Macquarie home loan and would like to access equity within their security property via a cash out or top up. This can be achieved by either:

increasing an existing home loan account, or
creating a new home loan account within the existing home loan facility.

Both scenarios would be completed via a principal increase application in ApplyOnline (i.e. not a new loan application), which enables your client to keep their existing home loan account(s) and access additional lending.

Who can submit a principal increase?

Your client will generally be eligible to apply for a principal increase if:

you're the same broker who originated the existing home loan
you're from the same aggregator and broker firm that originated the existing loan
the existing home loan has a BSB starting with 182
the borrower(s) and security property(s) on the principal increase application match the existing home loan
the borrower(s) are not company or trust borrowers
the existing security property is not being used as collateral with another Macquarie home loan (via a cross-collateral loan). This doesn’t include where there are multiple security properties securing the same home loan facility
the LVR of the home loan after the principal increase application will be 80% or below
the top up amount is at least $25,000
your client’s loan is not for construction or renovation where progress drawdowns are required
your client is not currently considered an expat and/or their loan was not originally settled as an expat loan.

If the existing loan is not eligible for a principal increase, an internal refinance application may be required.

When to create a new loan account

A principal increase can be done by creating a new loan account, within the existing facility. To do this, you need to complete a principal increase application in ApplyOnline and follow the steps in Add details of the existing mortgage. Once settled, you’ll be able to view this account in Broker Portal.

Scenarios where you’ll be required to set up a new loan account include:

If the principal increase amount is greater than the existing loan account limit and will change the primary purpose of existing loan account
If the repayment type on the principal increase amount will differ from the repayment type on the existing loan account
If the existing loan account has a fixed interest rate, as any changes to fixed rate loan accounts may incur break costs for your client.

Selecting primary and ABS purpose for PIAs

When submitting a PIA, you’ll need to ensure the primary purpose and ABS code combination you’ve selected is a valid combination. Use our ABS code matrix to help you select the correct loan purpose and ABS code.

When completing a top-up of an existing home loan account, the primary purpose and ABS code combination previously used may no longer be available (e.g. Owner Occupied and 237 – Purchase of household goods). In this instance, you’ll need to select a new combination that's appropriate for the additional lending (e.g. Non-Residential Investment and 221 – purchase a car).

Please note, when completing a top up of an existing home loan account, the declared primary purpose will not change the original primary purpose of the client’s account.

How to submit a principal increase application

In the Application tab

Select Principal Increase as the ‘Application Type’
Ensure your broker details are entered correctly, including your accreditation ID (i.e. your Macquarie broker code)
In the Originator comments section, include your client’s loan objectives, exceptions and mitigants.

In the Applicants tab

Enter your client's information as you would for any application.
Ensure their information is current and matches their existing details they have with us, including full name, DOB, residental address, mobile number and email address.
NOTE: Your client can view their existing details in Macquarie Online Banking or the Macquarie Mobile Banking app.
If your client wishes to change their contact details, they'll need to update their details prior to submitting the principal increase application.

In the Loans tab

Declare the Primary purpose of the additional lending (e.g. ‘Investment’ to assist with securing an investment property).
Select the appropriate ABS purpose code for the additional lending. Use our ABS code matrix and the manual purpose finder to assist with selecting the most accurate code.
Enter the amount of the additional lending (e.g. $150,000) in Base amount. For Cash amount, as this is for a PIA enter $0.
Use the Product Selector to select the Product type of the home loan. This will need to match the existing home loan’s product type (e.g. Offset Home Loan).
Enter the Interest rate and Repayment type of the existing home loan.
- If increasing an existing account, enter the same interest rate and repayment details. These details can be found in the Broker Portal, by searching your client’s name or facility number.
- If creating a new sub-account with a different purpose and repayment type, use our variable rate card to input our current interest rate.
Select the appropriate response for Is interest tax deductible? (applicable to the additional lending).
Ensure all mandatory fields are completed and select Done.

In the Securities tab

Enter the Type of security details of the existing security property that’s securing your client’s existing home loan facility
- Type = Registered Mortgage
- Transaction type = Owns
- Is primary security? = Yes
Enter the Location of the existing security property
Enter the Property Details including the estimated value of the property.

Adding details of the existing mortgage

Select + Existing mortgages and enter your clients existing Macquarie home loan facility details:
- If the principal increase is to create a new home loan account, select No for 'Is principal increasing'?
- If the principal increase is to top up an existing home loan account, select Yes for 'Is principal increasing?' When the principal increase is to top up an existing home loan account
All details of your client’s loan can be found on our Broker Portal, by searching their name or facility number as an existing client
Enter account details of the existing home loan account, including account number and BSB;
- If topping up an existing home loan account, you’ll need to enter the BSB 182-182 and account number of that account
- If creating a new home loan account, you can enter the account number of any existing account and BSB 182-182.

After a PIA is submitted

Once the PIA is submitted, a reference number will be generated (e.g. PIA-123456). Any future edits will need to be cloned to a new principal increase application.

Once completed, if an APP number is generated at submission, you haven’t entered the application type as 'Principal increase' and the application will need to be withdrawn and cloned. 

Preparing for settlement

Once formal approval has been received, our guide will step you through each stage through to settlement.

View all

Track your applications, view our processing times and easily access your existing client loan details, all within our Macquarie Broker Portal.

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