I'm trying to get my head around something when refinancing. An example. Let's say you bought IP1 for $240,000 using a 20% deposit of $48,000. Then you bought IP2 for $300,000 using a 20% deposit of $60,000. The total for both deposits is $108,000. The properties went up over time, and you decided to refinance so you can buy another IP. For this example, let's say both valuations came back at $325,000. And you decide to change banks, and to only use a deposit of 12% and pay mortgage insurance (capitalised). The deposits for the refinanced loans are $39,000 x 2 = $78,000. You had previously paid $108,000. What happens to the outstanding $30,000???