Plus its just unnecessary - can easily set it up without the x-coll at no/little cost to you. The only cost I can think of is that you may need to set up another split loan (and some banks charge a monthly fee for the additional loan).
Avoid cross collateralization
- Thread starter stibbzy
- Start date
Plus its just unnecessary - can easily set it up without the x-coll at no/little cost to you. The only cost I can think of is that you may need to set up another split loan (and some banks charge a monthly fee for the additional loan).
Hi SilverBear,
There are 2 concerning things in your statement here - the first is X-coll, the second is (most likely) NAB. When ever I hear these 2 things for a newbie investor, coming from a broker I think "Here we go again!"
NAB is good for certain things, but for someone who wants to invest (assuming your situation is pretty normal) they aren't usually the best choice early on.
I'd probably recommend you have a chat with a broker who knows about investment lending before you go too much further with your current one - it's best to get it structured right from the beginning to avoid potentially expensive mistakes.
Here's a list of some of the things wrong with xcoll. It's only 10, but I'm fairly certain I can come up with dozens of practical examples where I've seen it hurt people.
Thanks for all the informative responses, really helped me understand why I should avoid xcoll.
The broker got me a great deal, $1.4m loan on PPOR, at 4.62% 4 months ago before the rate cut, beating my other quotes by a mile.
I guess I need to question everything rather than believing all he says.
The broker got me a great deal, $1.4m loan on PPOR, at 4.62% 4 months ago before the rate cut, beating my other quotes by a mile.
I guess I need to question everything rather than believing all he says.
Its a good rate no doubt - but pretty standard for that loan size with the majors. NAB may have even shaved 2-3 more bps off.
Very Funny ^^^^^
