Hi there
I currently own a PPOR which is valued at $1.1m with a mortgage of $820k against it. The mortgage is with ING. I have $820k in the offset account, fully offsetting the mortgage.
I also have an IP in North Sydney. It is valued at $420k and is financed with NAB with a loan of $328k. This is a fixed loan at 5.90% which is about to come off its fixed period on 20 February.
So, I have been looking at what options I have for my IP loan when it comes off the fixed loan period. I have been attracted to Adelaide Bank's product of a fixed loan with 100% offset so applied with them. In their view the property is 37 sqm in area. My view is 41 sqm as per the title, but we have a disagreement over the definition of what a balcony is. My view is that what the unit has is a sunroom, but they are viewing it as a balcony. They won't lend under 40 sqm. So my mortgage broker says I have two options:
1. Look elsewhere / stay with NAB
2. Offer up my PPOR as a second mortgage for Adelaide Bank (ie cross collateralise)
Can I get some thoughts on the following:
1. Is there any chance I can win the argument that the unit is 41 sqm, in which case they will lend to me? Any tips on how to do this? I have just given them the title search which shows 41 sqm as the area
2. Are there any other lenders who will lend to this unit (given its area) and also offer a fixed rate with 100% offset?
3. Should I follow option 2 above and cross collateralise against my PPOR? Is this a definite "no no" or are there circumstances where I should not be too worried about crossing?
4. Any other things I should be thinking about?
Many thanks for your help, as usual!!
I currently own a PPOR which is valued at $1.1m with a mortgage of $820k against it. The mortgage is with ING. I have $820k in the offset account, fully offsetting the mortgage.
I also have an IP in North Sydney. It is valued at $420k and is financed with NAB with a loan of $328k. This is a fixed loan at 5.90% which is about to come off its fixed period on 20 February.
So, I have been looking at what options I have for my IP loan when it comes off the fixed loan period. I have been attracted to Adelaide Bank's product of a fixed loan with 100% offset so applied with them. In their view the property is 37 sqm in area. My view is 41 sqm as per the title, but we have a disagreement over the definition of what a balcony is. My view is that what the unit has is a sunroom, but they are viewing it as a balcony. They won't lend under 40 sqm. So my mortgage broker says I have two options:
1. Look elsewhere / stay with NAB
2. Offer up my PPOR as a second mortgage for Adelaide Bank (ie cross collateralise)
Can I get some thoughts on the following:
1. Is there any chance I can win the argument that the unit is 41 sqm, in which case they will lend to me? Any tips on how to do this? I have just given them the title search which shows 41 sqm as the area
2. Are there any other lenders who will lend to this unit (given its area) and also offer a fixed rate with 100% offset?
3. Should I follow option 2 above and cross collateralise against my PPOR? Is this a definite "no no" or are there circumstances where I should not be too worried about crossing?
4. Any other things I should be thinking about?
Many thanks for your help, as usual!!