Can Refinance include LOC(investment loan)?

Hi PCers,

I currently have a PPOR loan and investment loan (as a line of credit LOC). I used the investment loan to purchase shares which I would hold for long term.

My question is if I refinance with other banks (assuming if I would qualify for the same loan amount), could the new PPOR loan be set up with a separate investment loan?

Cheers,
LC

 

Yes it could!

 

So long as the new lender have a LOC product, sure. May need to give their setts team instructions to direct the funds the way you want at settlement (or do some adjusting post setts).

 

Thanks @Jess Peletier and @Redom. That's a big relief on my side. I initially thought I need to sell all my shares holding to pay off the existing investment loan prior to refinance.

 

@Rolf Latham appreciate your response. But newbie here hence I'm exactly not sure what you're referring to.

If you refer to the original post, my LOC is a separate investment loan which was linked to my main PPOR (the valuation has increased over the last 10 years).

 

if you have used hte money in the LOC it should be converted to a term loan probably. lower itnerest rate and better terms and better for serviceability

 

What do you mean by a Term Loan? Is that the same as fixed loan? if not, please provide some examples.

 

a 30 year principal and interest loan or IO loan.
LOCs are often at call.

 

Thanks @Terry_w, just checked my investment loan... Yes, it's contracted for 30 years and IO only for 3 years which I will extend when it's closer to the expiry date.