[BBPerthParticipant@bbperthJoin Date: 2012Post Count: 6]

February 3, 2013 - 1:07 pm

Hi,

Although I understand what Cross Collaterisation is, I am unable to tell if this is what the bank has done based on what I am reading in my loan documents (I am in the process of checking with my broker though…)

Investment loan 1 was taken out about 5 years ago…interest only

When investment loan 2 was taken out 6 months ago…I was sent new loan contracts for both loans. Loan 1 was then also adjusted back to a 360 month repayment schedule when settlement for loan 2 went through. I was required to sign contracts for both loans.

Does this sound like the bank has cross-securitised the loan?

Like I said, I am also checking with my broker…

Thanks very much.

[BBPerthParticipant@bbperthJoin Date: 2012Post Count: 6]

January 28, 2013 - 2:20 am

Yes, I have always gone through a broker.

[BBPerthParticipant@bbperthJoin Date: 2012Post Count: 6]

January 27, 2013 - 1:34 pm

Thanks very much for the info Shahin.

Next time, so next time I need to ensure I pay LMI on each loan individually.

[BBPerthParticipant@bbperthJoin Date: 2012Post Count: 6]

January 27, 2013 - 12:28 pm

Property 1 – Loan limit $353,000. Valuation 6 months ago $450,000

Property 2 – Loan limit $440,000. Valuation 6 months ago $430,000

[BBPerthParticipant@bbperthJoin Date: 2012Post Count: 6]

January 27, 2013 - 12:12 pm

Hi Shahin,

Yes it is 2 separate properties, each with different loans setup.

According to the last valuation, the first property is valued at approx $450,000 and the second (newly purchased) is still valued at pretty much the same as the loan amount.

Thanks for your response, I know this is a very general topic, however I want to ensure I understand it properly.