What you are asking is called a security substitution.
In principle yes it can be done.
Im sure your lender will be happy to oblige but with certain conditions.
Some of those may be:
The new property u buy must be on the same LVR terms (loan to value ratio).
Say u proceed to buy a property for $300k... the bank has made a loss on their possible return as they will now make a return on the 300k at 8.29% and not 500k.
So they may sting you for the difference in break costs.
But to answer your question.....yes it can be done and has been done many times.
