Loan split

Discussion in 'Loans & Mortgage Brokers' started by BenWa, 19th Oct, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. BenWa

    BenWa Member

    Joined:
    16th Oct, 2016
    Posts:
    22
    Location:
    Sydney
    Hi all,

    When increasing a $220,000 CBA loan from 80% LVR to 90% LVR. Is the best way to create a new loan split of $24,000 + LMI with both splits (original and new) secured against the property?

    Cheers,

    Ben
     
    BenWa, 19th Oct, 2016
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,171
    Location:
    03 9877 3000
    Both splits are going to be secured by the property, there's no way around that.

    As to should you split them, there's usually no harm in doing this, but it really depends on the circumstances of what the increase will be used for.
     
    Peter_Tersteeg, 19th Oct, 2016
    #2
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    What will the extra funds be used for?
     
    Terry_w, 19th Oct, 2016
    #3
  4. BenWa

    BenWa Member

    Joined:
    16th Oct, 2016
    Posts:
    22
    Location:
    Sydney
    It'll be used for an investment property, but with another lender.
     
    BenWa, 19th Oct, 2016
    #4
  5. Phantom

    Phantom Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    2,054
    Location:
    Sydney
    In that case, split the new loan so the interest that is incurred on the new funds can be distinctively attributed to the new property and not mixed up with the existing one.
     
    Phantom, 19th Oct, 2016
    #5
    Terry_w likes this.
  6. Brady

    Brady Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,570
    Location:
    Adelaide, SA
    @BenWa if the funds are being used for a different purpose to the original loan - don't ask for a increase of the loan. Ask for a new loan to be completed secured against the existing property. Should be very simple.
     
    Brady, 19th Oct, 2016
    #6
  7. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,184
    Location:
    Perth
    You only need to create 1 new loan split for 24k and the LMI will be aportioned pro rata over both loan splits.
     
    Colin Rice, 23rd Oct, 2016
    #7