Cross-collarization

Hi there

Ah with CBA oh well good luck firstly because they are notorious at this and don’t seem to listen. they promise the world and then years later try and deny they said that.

With a normal lender it is all about how the loan is structured. Ensure that one property is not used to support the loan on another and then keep within the LVR guidelines.

Assume you have a house worth $200,000 and want to buy another for the same amount.

You would take out a standalone loan on the purchase property for $160,000 and then a separate loan secured against the other property for the $40,000 and costs.

In some cases the equity position does not always allow the figures to be this neat but your mortgage broker should be able to map out a plan of attack for you.

Don’t forget the CBA are not great lovers of HDT’s so it may take you a month or two to find someone in the organsation who understands them.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.

Hi Richard,

Just clarifying: So to avoid x-collateralisation in the example you made you would need 3 individual loans?? The existing loan on the PPoR, the $40,000 equity from the PPoR and then $160,000 for the IP?? Is this correct, and how would you then go about paying off all these loans?

Do any incur extra fees and interest rates or anything?

Cheers

Paul[suave2]