All Topics / Help Needed! / Mortgage held with ANZ, using property equity to borrow with NAB – legit??

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  • Profile photo of darkness72darkness72
    Participant
    @darkness72
    Join Date: 2013
    Post Count: 51

    Hi,

    Just wanting to verify…

    1. If I have a property (A) with a loan / mortgage with the ANZ.
    2. My mortgage broker is using the equity in the property (A) to get a new loan from NAB to buy a new property (B).

    Q. I assume this is all ok? …..leading to
    Q. As its just the equity in the property (A) that I’m using for new loan (B) is that why ANZ are ok with this and its all legal?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    1. Yes – it’s fine.
    2. Why would it be illegal? It’s your equity – you don’t have to use ANZ to fund the next purchase. You can use whichever bank you like.

    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 Kate AshmorKate Ashmor
    Participant
    @kateashmor
    Join Date: 2015
    Post Count: 20

    If you are obtaining a second mortgage, the first mortgagee will probably need to consent: this is a standard condition of mortgage contracts.

    Kate Ashmor | Ashmor Legal Pty Ltd
    http://www.ashmorlegal.com.au
    Email Me

    Property Lawyer and Opiner

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    Some banks don’t like 2nd mortgages. It’ll be that you are taking a line of credit out with anz and then use that money to find the deposit, with the remaining finance coming from NAB.

    CBA are one of the banks that will go 2nd in line on a mortgage. Most banks policy is to be 1st and 1st only.

    • This reply was modified 6 years ago by Profile photo of wilko1 wilko1.
    Profile photo of JAJA
    Participant
    @ja10
    Join Date: 2015
    Post Count: 1

    Careful..the banks are tying up one property with the other by doing this. My accountant recommends against it for various reasons. Get professional advice. JA10

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Sorry Wilko that is not correct.

    All the big 5 Banks will take a 2nd mortgage.

    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 Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    I’d think this wouldn’t be a second mortgage guarantee situation, but an equity access followed up with purchase finance with NAB secured solely to the new purchase. This is standard fare and nothing to be concerned about.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    I’d think this wouldn’t be a second mortgage guarantee situation, but an equity access followed up with purchase finance with NAB secured solely to the new purchase. This is standard fare and nothing to be concerned about.

    Yep – that’s how I’ve read it too….and the basis for my response. Quite a normal structure.

    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 TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    I did it before.

    Nothing wrong, a broker set up for me.

    TaylorChang | Finance Broker
    Email Me | Phone Me

    Home loan | Commercial loan | 0414 691 517

    Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    Piggy back to this.

    I often wonder how the loans work on this. I have yet to do it.

    House A. $500,000 value $250,000 owed. $250,000 equity. I reuse $100,000 for property B deposit.
    House B. $500,000 value $400,000 owed.

    Am I paying interest in that $100,000 equity that I assume is a line of credit or similar? If so what’s my total net worth? Is it still $250,000 equity just split $150,000 and $100,000 now?

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