Does a Redraw affect your borrowing?

Discussion in 'Loans & Mortgage Brokers' started by Terrychris, 16th Jan, 2017.

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  1. Terrychris

    Terrychris Well-Known Member

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    I have a available Redraw of 175k on one of my IP's.

    If I was to ring the Bank now and ask for a loan to buy another IP I can imagine they would be concerned about the amount I can redraw from this IP I already have.

    Would that be the case ? Do I need to reduce the Redraw amount before I can borrow for another IP ?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yes. they will go on the limit
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If serviceability with that lender is an issue with the limit in place, you might be able to fix that by using another lender with better servicing for the next IP

    ta
    rolf
     
  4. dabbler

    dabbler Well-Known Member

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    They go off the loan amount/limit, you can have say 300k loan with 299 in re draw or offset & they count that as 300k at the going rate.

    But it is not all bad, if your going to buy other income producing investment.

    Talk to broker.