Hi Guys,
I have a home loan with NAB and i’m releasing some equity for a deposit on an investment loan. My question is- is it possible to use NAB again for the investment loan and not have it cross collateralised? My broker has said this was possible. The reason being is that NAB will lend 90% and the others are 80%.
Any thoughts would be much appreciated.
Griffo.
Certainly possible – it would just require two applications.
First application releases the deposit funds for the purchase, solely secured to Property A.
Second application is used to purchase new property, solely secured to Property B (new purchase).
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Ok perfect, thanks for the clarification Corey.
carefully read the loan agreements though. Not completely safe.
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
Not completely safe ……………Especially knowing NAB
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I had 4 separate IP loans with Comm. When I refinanced all the loans came back with every property listed on it. I told the broker (from the bank) that I did not want them crossed. She assured me they weren’t. HELLO!! It says so on the paperwork.
I refused to sign them. She had to go back and change them so each loan onl had one property listed as security.They do try it on. Read EVERYTHING carefully.
I had 4 separate IP loans with Comm. When I refinanced all the loans came back with every property listed on it. I told the broker (from the bank) that I did not want them crossed. She assured me they weren’t. HELLO!! It says so on the paperwork.
I refused to sign them. She had to go back and change them so each loan onl had one property listed as security.They do try it on. Read EVERYTHING carefully.
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good thing you know what to look for. Most people have no idea and get ‘stiched up’!
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
You can keep them uncrossed with the same lender.
I’ve set up that exact structure with NAB and other banks hundreds of times.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks guys, will make sure i read the contract carefully.
Yes Griffo you can ( and well done for knowing what to look for as Terry said). I agree with all above but want to add why would you? If you broker is an investor it is going to be gut instinct for them to avoid cross collateralization and also avoid a one bank trap.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Is it done through equity released or just another investment loan product secured with different proeprty ?
Many lenders and indeed Brokers elect not to keep the loans separate as it harder to move away if they are crossed.
Whether it is right for the client i have seen many Brokers encourage it to capitalise on the commission and ongoing trail.
Suggest you avoid it at all costs.
Cheers
Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.Richard Taylor | Australia's leading private lender
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