Refinance and offset account/cash out

[debden]

how do lenders feel about refinancing

Do lenders have an issue of refinancing, using the freed up cash to make payments back on your loan?

 

[tobe]

SOme do some dont. A while back there was a product that had just this in mind. they gave youa term loan, and a line of credit attached. You still make a repayment, however the Line of credit is drawn to make up the shortfall. It was good for negative geared investors, and Owner occupied wanting a repayment holiday for some reason.

theres also Bill Zheng's mortgage products, which had a similar outcome.

All lenders will certainly want you to show either lo doc or full doc that you can support the repayments without having to use a line of credit to top up the repayments. However if you can qualify for the loan, and you would just like a small line of credit for future investment purposes, thats fine.

You might just happen to use the line of credit to help with property holding costs later on.

 

[exstatic]

What if you don't use all the free'd up cash from the refinance.. just say you use 50% of the freed up cahs for another investment, and leave the other 50% in the offset account.. would that be an issue at all?

 

[Rolf Latham]

they wont know

ta
rolf