how to get around paying economic cost, page-3

Hi DF

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.