Extracting Equity

My current situation:

• I am currently building a new home, with expected completion in April next year

• I have a 4yr fixed rate loan on the loan portion associated with the land
• I have a variable portion loan associated with the construction of my home.

I would like to extract equity from the property upon completion of the build, however I would also like to retain the fixed portion of my loan (sub 2% rate). Will it be possible to extract equity from the property be creating a new split loan portion? Or will I be required to break my fix loan and complete a full refinance?

 

Can be done, you'll just draw out another loan split for the equity portion only.

 

Quite simple, you just set up an additional loan to extract the equity, along side your existing loans.

You'll need to wait until the construction is completed.

 

Loan Tip: ‘Accessing Equity’ When on a Fixed Rate Loan Loan Tip: ‘Accessing Equity’ When on a Fixed Rate Loan

 

Assuming drawing out a loan split for the equity portion with an existing fixed rate on a property is lender dependant or is this common across most of them?

 

any lender would contemplate this. as long as all other requirements met.