Split loan over subdivided land

Hi there,

I am hoping to subdivide my back block but I have some questions in regards to the loan.
Once titles are issued and the lender needs to be notified I am guessing they will want to split the loan across the titles due to the amount I have borrowed.
At this time, would the lender simply split the existing borrowed amount across the two as an apportionment or would they want/need to refinance it all and reassess my financial situation eg. My current income etc.

Thanks so much in advance

 

They will want to keep loan as is and use both parcels as security.

It is in your interest to split it and have each split secured by one title.

 

Hi Terry,
Thanks so much for your reply.
Why is it best to split it? Is this for when I need to sell off titles separately?
Thanks again

 

Hi Terry,
We are hoping to have a baby and I would not have an income at the time of titles being issued, my husband would be paying our mortgage.
If the bank split the loans over the two titles, would they want to reassess our finances?
Thanks again

 

possibly not, but maybe