Hi ,
I am new a new member so please excuse if I am breaking any rules in seeking advice here or if the question has been previously answered.
I am in a bit of dilemma and need some advice soon . My question relates to structuring of my IP loans. I have them crossed at the moment and was in the process of having them uncrossed. My Tax agent who is also a mortgage broker is not in the favor of the idea and has recommended refinancing with a different bank at a better interest rate which is less that 0.8% of existing.I am all for the saving in terms of the rates only issues is the new Bank as he reckons will finance the IPs only if they are crossed. I am unsure and would appreciate advice here , I read every where that crossing properties is a bad idea and it is bit of a process to have the all uncrossed but at the same time the savings of 0.8% will make a difference of 4k in savings .
Please help.
ABI very much doubt the bank requires the loans to be crossed – the tax agent is just being lazy. Go see an investment focussed broker who can fix up your situation and look out for your interests, rather than whats easy for them.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for your reply Corey appreciate it. Will see an investment focused broker.
Hi AB,
Try Corey himself. I’m sure he will do an outstanding job for you. If you are looking at changing Banks, that is an ideal time to sort this kind of stuff out. Corey knows it chapter and verse, and will surely show you your options, and why one way is better than other ways. That’s what good MBs do.
If not Corey, there are a number of other good MBs on here – choose one whose posts seem to suit you – their writing style, their helpfulness, their advice to others… Pick one and make contact. Getting a good team behind you is one of the major items when investing.
Benny
I think your tax agent doesn’t understand borrowing, or he is not acting in your best interest.
Crossing securities is dangerous.
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
Thanks for the tips…appreciate it.
Don’t cross your loans.
That rate discount should be on offer regardless of whether the loans are crossed up or not.
If in doubt – get a second opinion.
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]
I agree… Cross-securitising loans can be dangerous if there is something like an “all-monies” clause… Basically gives the bank permission to access and call in all your properties if they see something wrong/bad happening
All lenders have an all-monies clause – but cross collateralising is like fuel to the fire, by giving them the ability to actively choose what you can do with the properties without a lot less intervention (not requiring court orders to enforce, legal team etc).
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Looks like you’ve received some good advice @ameetvbhat, but here’s an article I wrote on the topic last year:
https://www.propertyinvesting.com/the-dangers-of-cross-collateralisation/
Jason Staggers | JasonStaggers.com
http://jasonstaggers.com
Email Me
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