Fixing rates/top ups/maternity leave

Fixing PPOR home loan...loans with CBA, currently 3.09% PI (& 3.55% PI equity loan for IP) both variable.... and 2.09% IO fixed for the IP till Oct.

If I fix PPOR loans can I still get a loan top up/equity draw for improvements during the fixed period? No plans to sell PPOR in next few years. IP is up to 7yrs IO so may need to consider if I can’t get a new IO loan elsewhere as circumstances have changed - is this even possible or is that it!?

Would I be better trying to move both loans across to a different lender together once fixed period ends and refinancing to get the additional funds then (IP is completely separate, used an equity loan from PPOR as deposit though)? **Problem with this is I’m on 1/2pay maternity leave till January so MB said not possible now (do have letter from 20+yr govt employer stating return date and salary etc as I thought I read some lenders will accept?).

PPOR is probably above 20% LVR now given rise in Brisbane as was close last October on bank desktop valuation. IP was foolishly a townhouse so hasn’t gained much equity ever even though also in Brisbane so 10% equity that I used for deposit maybe.

 

Fixing rates doesn't exclude you from getting an equity release or another loan. It just means you're committed to that lender unless you want to incur the break costs.

An equity release combined with maternity leave can be a problem. The lenders calcualtor may not service the loan whilst you're on a reduced income. This normally isn't a problem if you can show enough savings to cover the difference until you return to work.

The problem with an equity release is it raise the question of what the funds are being used for. Will they be used to cover the shortfall when your savings should be covering this? The lender is probably going to know the answer, but it does raise doubt.

 

Thanks....yeah I figured that which is why I wanted to make sure I could borrow later if I fix now. Have enough savings to cover loans/ shortfall in income til I return but MB said I’d need savings of nearly 10x that (over half taxable income??)...Just wanted to try and put up a carport to keep car cooler/get baby in dry esp in summer and get someone in to finish a landscape job I never got done before hands full.
Would have been nice to have the option to move to a lender other than CBA as mortgage insurance has always prevented but no point holding out for that.

 

Cba don't have a good Mat Leave policy, If you need the funds urgently then ANZ/St George is the bank to go, As long as you have some savings to cover the Mat leave period.