Home Loan extra repayment

Discussion in 'Loans & Mortgage Brokers' started by Sheep112, 13th Jul, 2017.

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  1. Sheep112

    Sheep112 Well-Known Member

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    Hi all

    If I have a westpac rocket repay home loan, I have made extra repayment on top of the normal repayment. My home loan shows available 5k. Am I able to transfer this out like normal?

    Thanks

    Rich.
     
    Sheep112, 13th Jul, 2017
    #1
  2. Terry_w

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

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    Yes, but there will be tax consequences if you want to ever claim the interest.
     
    Terry_w, 13th Jul, 2017
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If your loan has redraw activated, then you have access to those funds. If not, then its usually a matter of a phone call and a form.

    is this an IP or PPOR now RRHL suggests home ?

    ta
    rolf
     
    Rolf Latham, 14th Jul, 2017
    #3
  4. Archaon

    Archaon Well-Known Member

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    Is this an IP?

    Do you want to use the funds for investment purposes, or private use?
     
    Archaon, 14th Jul, 2017
    #4
  5. Sheep112

    Sheep112 Well-Known Member

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    This is the PPOR home loan, we made extra repayment over the year. I assume it wouldn't affect or cause any harm if I take it out? I tried doesn't a transfer out last night, it seems normal.

    Thanks guys.
     
    Sheep112, 14th Jul, 2017
    #5
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    The simply answer is yes. You can usually redraw extra repayments.

    Cheers

    Jamie
     
    Jamie Moore, 14th Jul, 2017
    #6
  7. Weaver

    Weaver Well-Known Member

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    @Sheep112 Be aware, that some lenders may adjust your minimum repayment (upwards) because your re-draw is considered new borrowing.
    Even though you are ahead in your repayments, they can hike up your minimum repayment to 'compensate'
     
    Weaver, 15th Jul, 2017
    #7