Changing loan securities

[yadreamin]

Hi
Couple of queries about finances.

LOAN 1......I have an ip with a stock standard variable IO loan.
If l sell ip l would like to keep the loan ? [pay it down to say 1k with sale proceeds]

Loan 2........I have another ip with a IO No doc loan
Can l keep loan 1 open after sale of ip and move ip 2 across to loan 1? which is a much better loan.

How hard is it to do this if it can be done?

What would l have to do to have this done?

I hope l have made sense
cheers
yadreamin

 

[Peter_Tersteeg]

It does depend on the lender. Some can do what you suggest.

I'm curious about the reasons for this. Is it because your circumstances may not qualify you for another loan, or do you want to avoid exit fees?

In one case, the client sold a property and had some exit fees. He bought a new property within 6 months and the exit fees were refunded at settlement. He still had to qualify for the new loan though.

 

[yadreamin]

Thanks PT-Bear
The reason is that a full doc is a much better loan than a No doc
and yes if it can save of fees it is a bonus

 

[Bradsdad]

If you're wanting to swap the 2nd loan from No-Doc to Full Doc you'd need to have your financials ready. A security swap has nothing to do with the loan type.

 

[yadreamin]

Thanks bradsdad
yes l will have all of that ready
cheers