Refinancing - equity split access

Hi all, currently in the process of refinancing to a new lender. This will
be two splits
A - pay off PPOR to existing lender (then owe new lender)
B - the equity split.

Valuation is fine so I will be able to access plenty of equity into loan B.

If my previous bank drags their heels with the discharge, will this delay when I can access the loan B equity with the new lender?

Hoping to get my hands onto this ASAP for a deposit with a new property.

 

Thanks Rolf.
So my question is, can the equity split with the new lender be made available before they settle the first split with old bank?

 

Makes sense! Thanks

 

Does an "IOU" scribbled on a piece of paper not suffice anymore?

 

AKA a deposit bond.

No lending without security, the only time this would happen is with a lender which does Fast-Refi wherein they get title insurance over the interrim period, so they're not required to wait until the title changes hands. It can be a finnicky process and not something I'd specifically be looking for as a feature compared to the more long term needs.

 

Quite often this is dictated by who the lender is your refinancing from. Some are more likely to slow it down than others, with longer wait times.

You can go via the fast Refi process if your new institutions with certain banks, but most don't offer this service (St G & Firstmac do). This allows the new lender to provide funds before officially having the title, taking the risk of the other lender slowing it away.

Deposit bond for next purchase is also an option, but comes at a fee.

 

A possible solution - borrow temporarily from family etc and then refinance this loan with the bank loan when it comes through.

If set up properly the deductibility of interest can be maintained.