CBA loan splits question

Discussion in 'Loans & Mortgage Brokers' started by ChrisP73, 13th May, 2022.

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  1. ChrisP73

    ChrisP73 Well-Known Member

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    Hi all,
    I have a question about the operation of CBA loans (assume the Standard Variable Rate loan type).
    Presume I have two loan splits :
    -loan split A, limit 100K, balance 80K, available redraw 20K
    -loan split B, limit 200K, balance 200K, available redraw 0K

    I want to realocate the 20K available redraw from loan split A to loan split B

    No change to loan balances no change to individual loan limits

    Can this be done administratvely? ie will CBA allow this without triggering a full application?
     
    ChrisP73, 13th May, 2022
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    not doable without a new app

    Splitting down is fine, up is credit

    Suggest you split the 100 into an 80 and a 20, that way you have 2 discreet splits for what sounds like 2 different purposes

    Roundabout way of doing DR the clunky way with some lenders

    ta
    rolf
     
    Rolf Latham, 13th May, 2022
    #2
  3. Chris B

    Chris B Well-Known Member

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    This doesn't make sense, as having the redraw available in loan B requires a change to either the loan balances or the loan limits?

    Do you want to change the limits?
    -loan split A, limit 80K, balance 80K, available redraw 0K
    -loan split B, limit 220K, balance 200K, available redraw 20K

    or

    Do you want to change the balances?
    -loan split A, limit 100K, balance 100K, available redraw 0K
    -loan split B, limit 200K, balance 180K, available redraw 20K

    The first option is a variation that requires approval from the lender.
    The second option can be done, simply by transferring the available 20k from loan A to loan B.
     
    Chris B, 13th May, 2022
    #3
  4. inertia

    inertia Well-Known Member

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    The third option that would possibly avoid contamination issues:
    -loan split A, limit 80K, balance 80K, available redraw 0K
    -loan split B, limit 200K, balance 200K, available redraw 0K
    -loan split C, limit 20K, balance 20K, 20K in offset available for use
     
    inertia, 13th May, 2022
    #4
  5. ChrisP73

    ChrisP73 Well-Known Member

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    Thanks Rolf.

    What if loan A was fixed (unusual situation). Can you split a fixed loan? In this example to an 80 fixed and 20 variable??
     
    ChrisP73, 13th May, 2022
    #5
  6. AndyPandy

    AndyPandy Well-Known Member

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    You'll be charged a fee to break a fixed loan. The amount would be specified on your loan agreement.
     
    AndyPandy, 14th May, 2022
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    CBA will apply a partial break cost I recall, but youd want to check before proceeding

    10 k per split is the max u can repay per annum

    Depending on what the current rate is, its likely the break cost will be zero or very small, 50 admin fee and away you go.

    ta
    rolf
     
    Rolf Latham, 14th May, 2022
    #7
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