- darkness72Participant@darkness72Join Date: 2013Post Count: 51
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?Jamie MooreParticipant@jamie-mJoin Date: 2010Post 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.
JamieKate AshmorParticipant@kateashmorJoin Date: 2015Post Count: 20wilko1Participant@wilko1Join Date: 2010Post 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.
JAParticipant@ja10Join Date: 2015Post Count: 1
- This reply was modified 6 years ago by wilko1.
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. JA10Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Sorry Wilko that is not correct.
All the big 5 Banks will take a 2nd mortgage.
Yours in FinanceCorey BattParticipant@cjaysaJoin Date: 2012Post 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.Jamie MooreParticipant@jamie-mJoin Date: 2010Post 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.
JamieTaylorChangParticipant@scha9799Join Date: 2009Post Count: 234Walking to runParticipant@alisdair-horgenJoin Date: 2014Post 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?