All Topics / Finance / The best way to release equity….for IP2

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  • Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
    Join Date: 2012
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    You do not need to cross securitise. Either pay for the offset or just have the loan sitting in redraw. Just make sure its a separate loan account and you are not contaminating deductible loans. 

    There is a misconception that some banks give better valuation or some valuation companies give better vals than others. This is incorrect. Valuations come down to the specific valuer of that organization doing the valuation for that specific lender.

    Here is how I would approach it – order a modelled estimate via ANZ (system chooses this but theyare quite common) and concurrently order a few upfront valuations with a few of the other lenders. Just make sure that they are different valuers. Then assess you will give you the highest amount of equity. This should dictate what you do to a certain extend.

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    Profile photo of s0805s0805
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    Qlds007 wrote:
     Anz will allow the funds to be paid back into the loan itself on drawdown without closing the account (I have done it on 2 forum clients loans which settled over Xmas).

    Richard/Jamie, that's good to hear that ANZ does allow the loans to be paid back on drawdown. Just so i

    understand it right u mean using redraw…..so drawdown the IO loan and park all the money on redraw on the

    settlement….and use it from redraw when you are ready…is that right? that means i don't need offset accounts then…

    Given if I've understand this right….question for you Richard as you've done it for some of your clients…how to

    use this redraw money to pay for for example deposit or something….the reason I am asking is i've been told by ANZ

    that they don't allow cheque to be written from redraw account….so basically i've to manually take money from

    redraw and park it somewhere (not mixing with non deductible for sure) to write cheque from…..i wonder what your clients

    did in that situation? as somewhere it this forum there was discussion about not breaking the nexus…..

    currently I've three loans (secured against IP, secured against PPOR & equity borrowed from PPOR) all of them

    are seperate IO loans….now that I am planning dip into equity of PPOR again…just wondering can I top up the

    existing IO loan or additional equity needs to be setup as seperate loan….atleast this way i avoid having multiple loan accounts…

    will ANZ allow that….??

    Profile photo of Richard TaylorRichard Taylor
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    Anz allow 5 separate loan splits under a Breakfree package so no reason why they will not allow a further split.

    If there is an issue merely increase one of your existing Investment loan splits.

    Cheers

    Yours in Finance

    Richard Taylor I Ph: 07 3720 1888 I [email protected] 

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    Profile photo of Jamie MooreJamie Moore
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    s0805 wrote:

    Richard/Jamie, that's good to hear that ANZ does allow the loans to be paid back on drawdown. Just so i

    understand it right u mean using redraw…..so drawdown the IO loan and park all the money on redraw on the

    settlement….and use it from redraw when you are ready…is that right? that means i don't need offset accounts then…

    Yep that's right.

    Cheers

    Jamie

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    Profile photo of TerrywTerryw
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    s0805 wrote:
    Qlds007 wrote:
     Anz will allow the funds to be paid back into the loan itself on drawdown without closing the account (I have done it on 2 forum clients loans which settled over Xmas).

    Richard/Jamie, that's good to hear that ANZ does allow the loans to be paid back on drawdown. Just so i

    understand it right u mean using redraw…..so drawdown the IO loan and park all the money on redraw on the

    settlement….and use it from redraw when you are ready…is that right? that means i don't need offset accounts then…

    Given if I've understand this right….question for you Richard as you've done it for some of your clients…how to

    use this redraw money to pay for for example deposit or something….the reason I am asking is i've been told by ANZ

    that they don't allow cheque to be written from redraw account….so basically i've to manually take money from

    redraw and park it somewhere (not mixing with non deductible for sure) to write cheque from…..i wonder what your clients

    did in that situation? as somewhere it this forum there was discussion about not breaking the nexus…..

    currently I've three loans (secured against IP, secured against PPOR & equity borrowed from PPOR) all of them

    are seperate IO loans….now that I am planning dip into equity of PPOR again…just wondering can I top up the

    existing IO loan or additional equity needs to be setup as seperate loan….atleast this way i avoid having multiple loan accounts…

    will ANZ allow that….??

    I have previously attempted to get ANZ to pay a draw down back into the loan and was refused. I went higher up the line as far as a could but no luck.

    Also, once you get the money into the loan then how do you use it.

    I would advise using a LOC if possible.

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    Profile photo of s0805s0805
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    Seems like it is matter of who you know in ANZ for loan drawdow, when i asked my MB before taking on loan, he said it's impossible….

    Terryw wrote:
    Also, once you get the money into the loan then how do you use it.

    Terry, that is something I am keen to hear from Richard as he had several clients done this….hence my question about how to use the money from redraw to pay for investment costs…..

    Qlds007 wrote:
    Anz allow 5 separate loan splits under a Breakfree package so no reason why they will not allow a further split.

    If there is an issue merely increase one of your existing Investment loan splits.

    Richard, I always get confused with split loans…..just so i get this right split loans basically means i can ask ANZ to split my existing IO loan (which is equity release from PPOR)….and get them to create another loan account (with additional equity release from PPOR) …so they will end up creating new loan account for additional PPOR equity release……which means I'll be end up having 2 separate loan accounts both equity released from PPOR….i was thinking to top up the existing loan account rather than 2 separate loan accounts?

    Jamie, thanks for your confirmation….

    Profile photo of PLCPLC
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    Qlds007 wrote:
    Anz allow 5 separate loan splits under a Breakfree package so no reason why they will not allow a further split.

    If there is an issue merely increase one of your existing Investment loan splits.

    Richard, is it still a maximum of 5 loan splits? I seem to recollect that ANZ changed to unlimited loan accounts under the one breakfree package recently?

    Cheers

    Tom

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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Hi Tom

    Ok apologies you might be correct.

    I have been in Europe since 4th November so may have missed the odd update.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of s0805s0805
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    @s0805
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    PLC wrote:

    Richard, is it still a maximum of 5 loan splits? I seem to recollect that ANZ changed to unlimited loan accounts under the one breakfree package recently?

    That's even better….but still if they allow to topup the existing loan account to release PPOR equity would be better  rather than new loan account….Is it possible?

Viewing 9 posts - 21 through 29 (of 29 total)

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