Can I refinance this way?

[want2bewealthy]

Hello!

I hope you're all well.
Just a quick one for you: I'd like to give my wife a deposit to purchase a property. I have a property that is valued at a certain amount and if I took the total borrowing on it to 80% it would cover the deposit required.

Here is my question. Because this loan is 100% fixed, am I able to top it up to 80% but have the extra funds (the increase itself) placed in-to a seperate variable loan so it is not a part of the loan it is being withdrawn from?

The loan in question is from CBA and I have not yet attempted a cash out with them but am not expecting any hassles because I hear their cash out policy is pretty good. But thats a whole nother' story. Time will tell.

Thank you.

 

[One Drone]

It's definitely a question for a good broker. Policies change all the time but generally that's the flexibility you lose with a fixed loan, without bigger fees you won't be able to top up or refinance. That said, if you are paying a rate way lower than the current rate, then they would rather you be paying the current rate and may not mind giving you the top up or refinance you need.

 

[Rolf Latham]

yes u can do that, and at 80 u should be ok for the cash out too

ta
rolf

 

[want2bewealthy]

Fantastic, thanks Rolf.

Will call the top-up centre.

 

[Marty McDonald]

You can't top up the fixed loan you simply do a new variable rate loan. If your wife is not a borrower on the existing loan it may be an advantage to include her on the new loan so she can claim the interest (as she will use it for the new purchase).

 

[Rolf Latham]

what arty said is right

needs to be a separate loan, sorry, thought that was obvious, I should never assume!

ta
rolf