Travel Australia with kids - rent or sell?

Thanks John,

Yes I have considered that there is always the possibility due to various reasons (personal through international) that the bank may with-hold redraw ability. So yes it makes sense to pull equity into a normal account. In this instance it could make sense to convert the loan to have an offset facility, however the interest rate is higher in this case.

I do have 2 splits currently, one with equity just as a normal basic PPOR loan with redraw (no offset), basic and cheap option (decent interest rate). This was where I planned to pull the money from but it does limit my spending, which is good in a way, as I don't want to burn my financial position too much.

The second split was drawn for an IP, however life, job, relationship changes have put that idea on hold. It's an interest only loan that setup for investment, so higher interest rate. It has nothing owning on it currently. Obviously I don't want to use that one for this purpose.

I guess it may be possible to roll that into the other loan but I'm sure that means a complete re-eval. Which brings us the point about servicing and leaving ones job, of which I started a new on this year and it's certainly not a long term prospect (was pitched make believe, should have went with my gut haha), so while I've over 3 months in, probation is 6 months so attempting to re-jig the loan at the moment may be a bad move.

The long term travel 'gypsy' spec idea would be more like 6 months out with the prep I have to do, but vehicle purchase and setup would be far sooner than that, so holding out for a while to re-jig the loan isn't really an option.

 

Have you thought about converting the second IP split to owner-occupied loan type instead of rolling it into the main loan? Some lenders are still doing interest only for owner-occupied loans so might be worth a crack.

Could also ask for a top up at the same time

 

Will certainly look into it. Cheers.