Selling IP on fixed rate?

[Lukey13]

I currently have 2 fixed rate loans (Suncorp) for an IP. One secured against the IP itself (80% LVR) and the other secured against my PPOR.

1. If I sell my PPOR (either to my family trust or to another buyer altogether) am I able to transfer security to the new PPOR without incurring the massive fixed rate break fees?

2. If I sell the IP (either to my family trust or to another buyer altogether) am I able to "pay out" the fixed rate loans without incurring the quoted $18K break fees? I'm guessing the answer is "no" to this one!

 

[Lukey13]

Hey everyone

While I'm fairly sure that the answer to question two is that the "break fees" are inescapable, could someone please share their expertise with me on question one?

 

[Spectre]

IMO - and this is just me

Simple answer is if the owner of the asset changes then its pretty tough to keep the loans running.

We just had a client sell against our advice - settles tomorrow and penalties on $400k are just over $12k - we're hoping that CBA doesnt increase the exits asap and holds off a week.

Makes that heritage fixed rate loan with unlimited repayments look really good or the argument that a variable is the way to go in hindsight huh

Why not consider a substitution of security - ie. sell the house and use cash instead of the property or maybe keep the loan over the PPR and just pay out the IP loan (or vice versa)

Also have you worked out what the difference between variable and your fixeds payments would be?

Thats it gotta run sorry for the jumbled stuff