All Topics / Help Needed! / Stucture of loan HELP

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  • Profile photo of lulu1lulu1
    Participant
    @lulu1
    Join Date: 2004
    Post Count: 32
    July 24, 2012 - 1:56 pm

    Hi All
    We own our own home took equity from our house and bought Investment 1 in 2010 loan 330K in 2012 bought No 2 investment 290k  and all was good

    We are in the process of buying No 3 investment loan 235K and the bank is saying that we will be linking the loan to all other houses as to keep loan under LVR of 80%. I am not sure this is the right. I know structure is important he is avoiding us paying Lenders mortgage insurance. Any help suggestions or even just to say this is ok would be great.

     Thanks Lorraine

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400
    July 24, 2012 - 5:25 pm

    Hi Lorraine,

    You should avoid cross collaterisation of your properties. The less control the lender has over your properties, the better, especially if your PPOR is involved in any way!

    If you can structure theses loans via cross collaterisation, you should be able to structure them as standalone loans. Even with LMI involved, it's a small price to pay, and as it's for an investment property, the LMI is tax deductible over 5 years.

    PLC | Phoenix Loan Consulting
    Email Me | Phone Me

    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 25, 2012 - 12:03 am

    Yes that is a naughty banker there suggesting that.

    I suggest you immediately stop dealing with them as they don't have your interests at heart.

    Sounds like you have plenty of equity too so absolutely no reason to consider it.

    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 25, 2012 - 2:44 am
    lulu1 wrote:
    Hi All
    We own our own home took equity from our house and bought Investment 1 in 2010 loan 330K in 2012 bought No 2 investment 290k  and all was good

    We are in the process of buying No 3 investment loan 235K and the bank is saying that we will be linking the loan to all other houses as to keep loan under LVR of 80%. I am not sure this is the right. I know structure is important he is avoiding us paying Lenders mortgage insurance. Any help suggestions or even just to say this is ok would be great.

     Thanks Lorraine

    It's really frustrating to hear stories like this – and it's so common it's not funny.

    The bank is making a huge mess of your finances and acting purely in their own best interest.

    You should seek expert advice elsewhere.

    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 4 posts - 1 through 4 (of 4 total)

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