All Topics / Finance / Fixed rate – still use equity for purchasing IP without refinancing and incuring break costs?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of SlackerSlacker
    Member
    @slacker
    Join Date: 2009
    Post Count: 3
    April 16, 2009 - 3:07 am

    Hi, just started reading the books and joined this site!

    I have a fixed rate mortgage on our first home. Now that we have a bit of equity built up i would like to purchase our first investment.

    Is it possible to use the equity (value $415k loan $310k) without refinancing the existing loan and having to pay $20k in break costs?
    Cheers

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 16, 2009 - 3:41 am

    Hi Slacker

    Welcome to the forum and I hope you enjoy your time with us.

    Yes it is possible to do what you are wanting but will depend on who your existing lender is.

    If you want to provide a wee bit more information we can advise you accordingly.

    Richard Taylor | Australia's leading private lender

    Profile photo of SlackerSlacker
    Member
    @slacker
    Join Date: 2009
    Post Count: 3
    April 16, 2009 - 4:19 am

    Oh thats good to hear….

    Adelaide Bank is the lender ( i must say im not very happy with them and will not go with them again)

    Is there anything else you need to know?

    Thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 16, 2009 - 5:37 am

    Yes you can arrange a Line of Credit with Adelaide Bank although must admit the interest rates arent too flash.

    What you would do is get them to give you a LOC to say 90% of the property valuation and then use these funds to cover the  deposit and acquisition costs on your new IP. You would obtain this loan from a separate lender.

    There are still a couple of lenders doing 95% LVR for investment so get your mortgage broker to investigate the options for you.

    Hope this helps.

    Richard Taylor | Australia's leading private lender

    Profile photo of SlackerSlacker
    Member
    @slacker
    Join Date: 2009
    Post Count: 3
    April 16, 2009 - 6:26 am

    Thank you very much Richard… you have made my day!….although thats not very hard in this boring job of mine, bring on the financial independence!!!

    oh i see what you mean Adel Bank LOC 6%…

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 16, 2009 - 8:13 am

    No problems Slacker.

    Let us now if we can help further.

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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