I got 3 splits each with amounts in redraw. If I refinance this to a new bank does the redraw get brought over too and would the new bank know which split each redraw goes in to so it matches up or I gotta do all that manually after loan settles?
Refinance and redraws on split loans
Frozensage on 08/03/2023 - 09:04
Comments
I would just clarity footyboy's example…you need to make sure the new bank is taking the redraw into account in the funding table…If they just look at the existing loan statement balance they may just refinance $400k to a new $400k loan so you may lose the redraw.
And as for the second part, usually it's some back-office junior who controls disbursements, so it's likely they will put the redraw into one account, so you may need to move than manually.
Aidan.
Yeah ended up putting all the surplus into the offset account and I had to redistribute them into the right split.
I'm a broker (1,000+ refinances)
The surplus cash currently sitting in redraw of your existing loan would generally be available as redraw/offset in the new bank.
E.g.
Existing loan;
$500k loan, $100k redraw = payout of $400k
New loan;
$500k loan, only $400k owing to other bank = $100k surplus (to put back into new redraw/offset)
Hope this helps,
Aidan.