All Topics / Finance / Line of credit question

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  • Profile photo of maximusmaximus
    Join Date: 2003
    Post Count: 189

    If I was to refinance and give the new lender security over 3 properties worth approx 1 million dollars with a debt of $300,000, does that mean I could access $700,000 if this was set up as a line of credit.



    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213


    If the debt is $1mil, you would only get 80% of this = $800,000 less your current loan of $300,000. So that would be $500,000.

    There are also many factors that the lender will want to take into account such as your income (you will have be be able to afford the repayemnts on $800,000) and what you want the money for.

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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of Mobile MortgageMobile Mortgage
    Join Date: 2003
    Post Count: 913

    It may be a good idea to consider spreading your debt with a couple of lenders,
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    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

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