How to release a PPOR title without paying off it's loan.

Discussion in 'Property Finance' started by Rixter, 15th Jul, 2015.

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  1. Rixter

    Rixter Well-Known Member

    18th Jun, 2015
    Portfolio Perth Brisbane Sydney Melbourne
    I’ve been getting a few people asking how I was able pull my PPOR title and secure it's loan against other property, so as to give me unencumbered ownership of my PPOR without the need to pay its loan completely off.

    Basically this is the way I did it....

    I electronic transferred borrowed funds from an LOC that is secured against other investment property to pay down my PPOR loan.

    I then applied to have the mortgage discharged from my bank who held the PPOR title as security who then release it to me via the titles office.

    In doing so this effectively switched my PPOR loan security from the PPOR itself across to my IP and freed up my PPOR title into my hands.

    You can use this method to get your hands not only on your PPOR title but any title really, providing you have access to sufficient portfolio equity/funds for doing so and the LOC/loan you are withdrawing the funds from is not being used for investment purposes as this will contaminate it.

    For accountancy purposes, if you haven’t already done so, you need to separate the LOC/loan into personal & investment debt or set up a new loan completely for withdrawing the funds from.

    Freeing up a titles can be used for spreading lenders to minimise exposure risks and/or keeping your PPOR unencumbered.

    I hope this provides some food for thought.
    Last edited: 15th Jul, 2015
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  2. akira

    akira Member

    18th Jun, 2015