Loans & subvisions

[Madjack]

Hi

My current residence (PR) is an 810 Sqm block over 2 lots in brisbane. House is a dump & looking at splitting the lots & building a new PR & an investment house.

Currently I have a single mortgage part fixed variable.

Assuming I split the property, creating 2 405sqm lots, say Lot A & Lot B - Is it possible to assign the fixed portion of the debt to one of the Lots, Lot A, and leaving the balance variable debt to Lot B.

Or would be ideal process be creating 2 separate mortgage agreements with the bank?

Cheer

 

[Rolf Latham]

if u have 2 separate titles you can do what you want as long as you have the serviceability,and no lmi has been paid

ta

rolf

 

[Shahin_Afarin]

you will pay break costs on the fixed portion

 

[Terry_w]

Hi

My current residence (PR) is an 810 Sqm block over 2 lots in brisbane. House is a dump & looking at splitting the lots & building a new PR & an investment house.

Currently I have a single mortgage part fixed variable.

Assuming I split the property, creating 2 405sqm lots, say Lot A & Lot B - Is it possible to assign the fixed portion of the debt to one of the Lots, Lot A, and leaving the balance variable debt to Lot B.

Or would be ideal process be creating 2 separate mortgage agreements with the bank?

Cheer

Possible from a loan security point of view. Just consider the taxation side of the matter. The loan relates the to whole property so when you split the title you should probably split the loan into the relevant portions.

 

[Jess Peletier]

If the loan is portable, you can avoid breaking the fixed portion of the loan but it will depend on your lender.

Because you'll be creating two separate titles, normally with a subdivision the loan would just be refinanced however in your situation you'll be up for break fees on the fixed portion so if you can port the fixed portion and avoid those fees that's a good outcome.