Might the mortgage insurers decline a application with the applicant being a property developer as his income from the sale of properties is based on speculation and as a result they may lose money on the sale of properties if their is a market downturn ?
Thanks Terry. So its correct to say for a interest only loan you could redraw up to the original loan amount as the balance does not change since your only paying the interest charged and for principal and interest loans you could redraw up to the scheduled balance which reduces as you are paying some of the principal. In this way it works like a line of credit.
You would need to provide to the solicitor organising the current mortgage documents on the current refinance loan the loan agreement from the original loan in order to pay the stamp duty only on the increase.
Just reading the book 'How to Legally Reduce Your Tax' by Tony Melvin and Ed Chan and they advise in their book nobody owns a trust – it is controlled, not owned.
Alternatively you might be able to do a loan advance to say cover the stamp duty on the transfer and have the title transferred into the sole name at the same time at settlement. Please check with your current lender.
