Hi All,
I have two investment loans (IL-01 & IL-02), one for each investment property (IP-X & IP-Y), with two separate banks (A & B).
Say, IL-01 (IP-X is its security) is with Bank A,
IL-02 (IP-Y is its security) is with Bank B.
The LVR of IL-01 is comparatively low (have equity that can be used) and so I intend to refinance the IL-01 to Bank B, borrowing more against IP-X but planning to use that extra funds to clear the other IL-02 with Bank B.
After this consolidation,
I will not be a Customer of Bank A.
The overall outstanding loan amount will remain the same; just that IP-Y will not have any mortgage.
I will have only one Investment Loan, IL-03 with Bank B.
I assume the whole amount of IL-03 will be tax deductible. Anything else to know about this, before I proceed further?
Thx in advance!
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