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Acceptance of a POA in refinancing home loans

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Chris | 17 May 2016, 01:49 PM Agree 0
Has any broker had any success in refinancing a home loan with any lender using a POA. Couple own a home < 80% LVR and have an uncompetitive loan. Clients aged 59 (husband) and 63 (wife). Due to ill health (dementia) the husband has gone into care and wife has an enduring POA for all decisions including financial which was established over 3 years ago (immediately came into effect) when the client had capacity.

Given the sensitivity around the use of a POA in restructuring the loans it is still in the clients best interests and low risk to a bank due to:

• Client is not borrowing any additional funds;
• Clients will receive a lower interest rate and be able to repay loans quicker with less interest
• Loans better structured as a normal P&I loan. Based on current rates a 15 year P&I Loan would be less than current repayments on loans associated with this property
• Clients have a very strong net equity

Interested to see if anyone has had success in this area.

Thanks.


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