Partial Loan Transfer

Hi all,

I purchaed an investment property in QLD back in 2016 using equity in my PPOR for the deposit and purchaisng costs. This created a new 100k loan account with my lender (CUA).
The balance of the funds were covered by a loan with another lender (Tic Toc)

The investment property has increased in value by around 100k since then.

I'd like to pay out that loan with CUA so it is not secured against my PPOR; and transfer it across to TicToc.

If I request a loan increase from TicToc, they'll perform a valuation on the property. Assuming they agree that it has increased by 100k, I assume they will only take into account 80% of the equity when it comes to lending me more money. This would leave a 20k shortfall to pay out my existing CUA loan.

Just wanting to know - Do I have to pay out the entire CUA loan? Or can I just have TicToc pay out 80k of it, and leave the remaining 20k with CUA?

Edit: Just to be clear. I am considering selling my PPOR in the next year or so. I don't want to pay out the 100k loan and lose tax deductibility. Hence the desired to change security

 

You don't have to pay it all out. But when selling you will need to discharge the mortgage.

 

You could wait until closer to when you are planning to sell. If the value goes up another 25k, you can transfer the whole lot at once.

 

What you noted makes, assuming servicability there. If your plan is to sell your PPOR then you would want to increase your investment loan back to 100% of the purchase price + stamp.

Only way to do this is to order a few valuations with a few banks and see who will give you the highest.

 

Probably best you use a decent mortgage broker for this, if the Tic Tok valuation doesn't stack up other lenders could provide better valuations.
Tik Tok are fairly limited in what they will allow you to do/not do.