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  1. #1
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    Default Refinancing home loan for..

    Wondering if u can refinance your home loan and get extra money from that?
    Say loan is currently $300,000 and you refinance to $350,000 is that possible or will the bank need to know what money for?
    We want to pay for my husbands family home overseas.. But it's not investment so I don't want to be taxed on it as its not gonna make us money..
    I will ask bank but I wanted to see if anyone knew here? Thanks

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    The bank will come out and value your house, if they believe there is extra equity in it they will allow the refinance and you can use the money for whatever you like. I'm not sure I understand your reference to tax as its not a tax issue more of proving to the bank you can service the increased repayment.

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    Thanks that helps as we do have equity. I read online that buying property overseas we have to declare at tax time but we won't be getting rent out of it at all so just pay for it and it's out of our hands. But in my husbands name.

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    They won't allow you to borrow more than the worth of the house but they do take in to consideration the repayments you've already made. Depends on your bank as well, we did ours earlier this year with no issue.

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    Just remember that an overseas property is an asset whether you are making money from it or not. You need to declare it to Centrelink if you are or ever will receive a Centrelink payment. Both your assets and your husbands count.

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    They won't let you borrow more than 80% of the value without incurring lenders mortgage insurance.
    So you'll need a valuation done to determine the value.
    They generally don't ask. We're doing it at the moment to renovate the house

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    Ok thanks everyone. I hope they don't ask.. But I will be honest if they do. Will talk to someone about the tax part just incase.. Thanks

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    SuperGranny is offline Worlds best grandma! Winner 2012 - Most Helpful Member
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    my daughter did this to take a family holiday a couple of years ago. she had always made all her repayments on time, and the value of her house had increased over the years. it was very easy for her to do it, and her repayments are the same but the time frame for the loan has been extended. im not sure if the bank charged her any fees for doing this, but I guess they would have. marie.

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    Quote Originally Posted by kim85 View Post
    Ok thanks everyone. I hope they don't ask.. But I will be honest if they do. Will talk to someone about the tax part just incase.. Thanks
    You'll need to tell the ATO about your overseas assets.

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    Is the house overseas being bought in your names? Or are you just gifting his family the money to buy the house?

    If it's in your name, you'll have to declare it. But if you're just gifting them the money to buy a house in their own names then you won't have to declare it as it won't be your asset.


 

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