Finance

[WebBoard]

From: Mike .


Question re: realising equity increase during loan period
From: Curious Onlooker
Date: 17 Feb 2001
Time: 22:49:00

Question for the experienced please,

I've been told that when realising an equity increase, ie., getting a loan based on equity, that the original loan needs to be 'broken' and re-financed, incurring additional costs due to breaking the original loan term.

Is this always the case?

Cheers, Curious Onlooker

PS. Thanks to those who answered Mrs CO earlier.

 

[WebBoard]

Rolf

Reply: 1
From: Mike .


Re: Question re: realising equity increase during loan period
From: Rolf
Date: 18 Feb 2001
Time: 10:22:06

Hi

Loan top ups usually smallish fee ($300) + increased mortgage amount is liable for stamp duty on the mortgage.

Depends though, as has been said, who you are with. But even fixed rate loan scenarios can be accom with 2nd mortgage if need be. Can not see any real reason why this could not be done with most if not all .

Regards - Rolf

[email protected]

 

[WebBoard]

Terry A

Reply: 1.1
From: Mike .


Re: Question re: realising equity increase during loan period
From: Terry A
Date: 18 Feb 2001
Time: 09:34:06

I think would be the case if you changed lenders, but if you stayed with the same bank you should be OK.

 

[WebBoard]

DuncanM

Reply: 1.1.1
From: Mike .


Re: Question re: realising equity increase during loan period
From: DuncanM
Date: 18 Feb 2001
Time: 08:36:45

Possibly depends on your bank.

I've just established a Line of Credit with NAB based on an increased in value of our portfolio. Original facilities left intact.

Regards - Duncan

 

[WebBoard]

Ian (NSW)

Reply: 1.1.1.1
From: Mike .


Re: Question re: realising equity increase during loan period
From: Ian (NSW)
Date: 18 Feb 2001
Time: 09:50:41

Good Morning CO, Terry, Duncan & All

I believe this can be accommodated as 'an upstamping' of the mortgage...small miscellaneous fees involved (Adelaide Bank).

The original mortgage stays intact and you only pay for the establishment of the new loan.

Cheers Ian