borrowing money



From: Natalie Gibbeson

Hi everyone! I'm just starting out in the game of IP & am very excited about it. We are just in the process of exchange on our first IP, So very fresh....

Just logged on to this forum for the first time after being referred by a close relo.

Unfortunately I rushed into the purchase & didn't thoroughly grasp the finance concept to find we have X-collaterized so they tell me.Scared now that it will hinder any further investments.
I plan to speak with a finance broker following the settlement of this property.
Is it to late to sort it all out? & is this the best person to speak to?.
Some advise would be great.
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Reply: 1
From: Robert Forward

Hi Natalie

Rolf Latham is the forums residential mortgage broker. His website can be found at .

There are a number of us on the forum that use Rolf for our finance and he is very good at what he does. Rolf will be able to look at your current setup and suggest improvements etc to help with further purchases.

I hope this helps.


Property Inspection Reports @

The Sydney "Freestylers" Group Leader.
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Reply: 2
From: Mike .

Hi Natalie,

Having followed the forum for some time now my conclusion about cross-collateralisation (CC) with respect to hindering future investments is that it is a storm in a teacup compared to the serviceability issue.

I suggest you read the Finance posts in the Archive to get a more balanced view. It will soon become evident that serviceability and not cross-collateralisation is the real villain in our never-ending battle with the banks to improve our borrowing capacity.

Another villain that the banks have created to further hinder our portfolio collection is rent reliance. Rent reliance will stop further investments completely. If you're frustrated now, you aint seen anything. Think of cross-collateralisation as a mosquito - it stings, but is harmless. Think of serviceability as a snake - it's bite is very painful. Think of rent reliance as a bear trap - it stops you cold. You can struggle to get out - ie refinance with another lender but that maybe financially painful too.

Sorry for the scary story but at least you have some companions on this forum to enjoy the boat ride with.

Regards, Mike
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