I have two properties and both properties in the loan portfolio are cross-collatarilised against each other. I have spoken to the bank and they said it is possible to have them both as stand alone mortgages by completing a partial discharge application. Both properties would have to be valued and I may have to pay LMI on one the properties. I think the benefits of having them both as stand alone mortgages would far outweigh the extra 5 – 10 k in LMI that may have to get rolled into one of the loans, but I'm interested to hear people's opinions.
u could wait for further growth. that is a lot of money to pay out.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Rachel
Firstly welcome to the forum and i hope you enjoy your time with us.
Without knowing the actual numbers it is difficult to comment with some authority but i must admit i would be concerned why your existing lender is wanting to charge LMI again as had they done it correctly the first time you wouldn't be up for the additional cost.
I spend most of my working week at the moment untangling loan structures for forum clients who have had them badly structured by their Banker / Broker. It all really boils down to either a lack of knowledge or laziness on the part of the Banker as there is no difference and in fact i cannot think of any positive reason for a borrower why you would want to cross a loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
The reason the bank gave for the need to charge the LMI is because the second property doesn't have enough equity.tofhas it dropped in value?
i
if nTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
try again
if not then you could set up a loc on the first property and use this to pay down secnd loan. this should be dine so as to maintain deductibility. richard should be able to set thi upand maybe get u a better ratewhile u are at it and to teach your bank a lesson too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I had a local real estate agent value it recently and according to their valuation it is worth slightly more than what I paid for it. I may give Richard a call on Monday. Thanks
as long as both loans come in at less than 80% of the value of both properties it should be possible to restructure without lmi – subject to servicing etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hey Terry put your teeth back in that's 2 in a row very unlike you.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
i am trying to reply on tablet but am having problems
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Can normally tell which posts are on the tablet. Terry maybe time for an iPad
So we can see lol
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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