Anyone do debt recycling with CBA ?

Looking ahead, my IP loan is up for refinancing in about a year's time and I plan to move in and negotiate for OO rates. Will look to reduce the loan amount ($500K to $300K) and then pull out the $200K equity for investing and debt recycling.

Has anyone done debt recycling with CBA - what was the set up (LOC, offset accounts, split loans)?
From reading the threads on the topic, I'd want something that is flexible and simple (like the AMP facility which I don't think is available anymore). So far from experience the big banks have been painful and slow to change arrangements (eg. split loans), so wondering what others do

thanks

 

Yes its possible. Split out the loan - via a loan split form, takes a couple days via a form and CBA back end team to process. Can redraw and moves funds out - given its a loan account, its less flexible than LOC type facilities. It can be done, a bit clunkier than likes of AMP, Macq, etc. Summary, it can be done, but the products aren't specifically designed to do this as easily as some other products in marketplace (i.e. can't split out LOC's easily, may need to go to credit for changes in splits, etc).

Upside is each offset can have unlimited splits and splitting is free under package, useful for budgeting and tracking (most lenders don't do this).

 

AMP's Master Limit is still showing up on the website. I was looking at that facility, too.

 

Might be prudent for you to review in a years time, as most definitely it will be a different financial market with regards to credit policy and type of products.
Your personal situation &/or property position might change until then, who knows?
Forget what others are doing as everyone is different with income and ability to service.
AMP are okay, but there are better products out there.

Cheers

 

Yep. Via a switch form. They are pretty good in this regard.

Cheers

Jamie

 

AMP master facility is available still. Might be a better rate too.

 

I do a lot of dr through cba using svr splits. IO with $100 owing until I need them, then I draw down whatever is required for investment x and immediately after, pay down the last $100.

When the split is all used up, convert to P&I

 

thanks everyone, great info, I will revaluate when the time comes closer
good to see AMP is there. I am quite disciplined with money so don't need an option that forces money to be put away regularly
who knows, with APRA changes, people could start really focusing on debt recycling in next year or so, and the lenders may want to improve the products they offer to interest them

 

Why do you draw out $100?

 

Because the borrowing is a standard svr loan which will automatically close if it is entirely paid off (i.e. $0 drawn out)

 

Other way round I believe. Leave $100 owing so the loan facility is never closed.

Edit: Ahh @chylld beat me to it!