I’m in the middle of changing financial institutions. At present I have a LOC loan with about $36k in redraw. When they close this loan will they keep the $36k and transfer the loan to the new bank with the $36k deducted off the loan amount? Are my better to draw the $36k out before they transact? In previous posts I was advised that the redraw in a LOC account belongs to the bank.
Agh! I got the eebee geebees and pulled the cash out anyway. Peace of mind!!
Hi Dylan
Understand you might have already answered your own question but all the new lender will do is payout the remaining loan amount outstanding and as advised by the outgoing lender.
Of course if you Mortgage Broker has added a new line of credit to the new application then this will be in place on settlement.
Just need to be a wee bit careful when utilising a redraw especially if you are looking to claim a Tax deduction on the interest.
Richard Taylor | Australia's leading private lender
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