Hi all,
Just after some advice/clarity on what's probably a basic question.
I've got a P&I loan, with about 1/2 of it available as redraw due to faster than expected repayments over 18 months.
I'm ready to buy an IP and have $$ for deposit but would prefer to use deductible deposit $$ from a split IP-only LOC rather than from a PPOR redraw.
Question is this: If I modify the loan by splitting it in half as 'existing PPOR P&I with owing balance'/'new split IP LOC with nothing owing on this half when split' does this trigger 'early repayment' fees?
I'd assume that since the original loan product still stands and the balance simply decreases it won't and there is no 'break fee' for P&I in this case.
I've phone the bank and got the usual 'you will have to apply to get the exact cost' - and then pay whatever they hit me with.
Anyone who's done this or any MB's I'd appreciate your input.
Thanks,
Jazza
Just after some advice/clarity on what's probably a basic question.
I've got a P&I loan, with about 1/2 of it available as redraw due to faster than expected repayments over 18 months.
I'm ready to buy an IP and have $$ for deposit but would prefer to use deductible deposit $$ from a split IP-only LOC rather than from a PPOR redraw.
Question is this: If I modify the loan by splitting it in half as 'existing PPOR P&I with owing balance'/'new split IP LOC with nothing owing on this half when split' does this trigger 'early repayment' fees?
I'd assume that since the original loan product still stands and the balance simply decreases it won't and there is no 'break fee' for P&I in this case.
I've phone the bank and got the usual 'you will have to apply to get the exact cost' - and then pay whatever they hit me with.
Anyone who's done this or any MB's I'd appreciate your input.
Thanks,
Jazza