All Topics / Creative Investing / Need some explanation in how to get another loan without cross collateralizing PPOR ?

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of Henry AdamsHenry Adams
    Member
    @henry-adams
    Join Date: 2011
    Post Count: 105
    July 19, 2011 - 2:41 pm

    Hi People,

    I’d like to know if there is a way to get a loan from another institution without using my current home (PPOR) ?
    I do have existing equity in my offset account.

    so if anyone can explain it to me here about the concept of “firewalling” that’d b great :-)
    thanks,

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    July 19, 2011 - 10:02 pm

    Hi Henry

    To avoid crossing you take out a second loan against your current property. This loan will be used as the deposit and purchasing costs (stamp duty, etc) towards the next. You can then approach the same (or another) bank for the remaining loan amount.

    In general, if equity permits, you would take out the 20% plus purchasing costs out of one property and then source the remaining 80% for the other.

    If dealing direct with the bank, they'll no doubt try to cross your loans (it's better for them – not so good for you). If you're worried about structure, it's prob best to have a chat with a decent broker who will set it up properly for you and work in your best interest (not the banks).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Henry AdamsHenry Adams
    Member
    @henry-adams
    Join Date: 2011
    Post Count: 105
    July 20, 2011 - 10:49 am

    Cool, many thanks James for your reply and suggestion.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 20, 2011 - 11:48 pm

    see how easy it is!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    July 21, 2011 - 6:33 am
    Terryw wrote:
    see how easy it is!

    Haha, tell the bank branch staff that!

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 5 posts - 1 through 5 (of 5 total)

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