Looking at my second IP and currently have a 'pro pack' loan with St. George $395/pa with all the bells and whistles.
Everything I read seems to say do not cross-collateralise!
My situation:
1. IP 1 Loan amount $246k - Value $400k
2. Budget IP 2 - $550k purchase price
I want to maintain 80% LVR so cash savings will make up the shortfall in equity.
Questions
a) At only two properties do you see any risk with collateralisation
b) are the advantages of 1.0% off standard variable rate worth it (loan amount over $750k) compared with 0.7% now.
c) Should I refinance with St. George leaving IP 1 with a loan of $320k (me with additional $74k cash?)
May be a silly question but if I do point c) and then take a loan out with St. George with that cash is that still cross collatorisation?
i.e.
Scenario 1 - St. George
IP 1 Loan amount $246k - Value $400k LVR 61.5%
IP 2 Loan amount $514k - Value $550k LVR 93%
TOTAL LVR 80%
Or
Scenario 2 - St. George
IP 1 Loan amount $320k - Value $400k LVR 80%
IP 2 Loan amount $440k - Value $550k LVR 80%
TOTAL LVR 80%
Or
Scenario 3
IP 1 Loan amount $320k - Value $400k LVR 80% :- St. George
IP 2 Loan amount $440k - Value $550k LVR 80% :- Alternative lender
TOTAL LVR 80%
Everything I read seems to say do not cross-collateralise!
My situation:
1. IP 1 Loan amount $246k - Value $400k
2. Budget IP 2 - $550k purchase price
I want to maintain 80% LVR so cash savings will make up the shortfall in equity.
Questions
a) At only two properties do you see any risk with collateralisation
b) are the advantages of 1.0% off standard variable rate worth it (loan amount over $750k) compared with 0.7% now.
c) Should I refinance with St. George leaving IP 1 with a loan of $320k (me with additional $74k cash?)
May be a silly question but if I do point c) and then take a loan out with St. George with that cash is that still cross collatorisation?
i.e.
Scenario 1 - St. George
IP 1 Loan amount $246k - Value $400k LVR 61.5%
IP 2 Loan amount $514k - Value $550k LVR 93%
TOTAL LVR 80%
Or
Scenario 2 - St. George
IP 1 Loan amount $320k - Value $400k LVR 80%
IP 2 Loan amount $440k - Value $550k LVR 80%
TOTAL LVR 80%
Or
Scenario 3
IP 1 Loan amount $320k - Value $400k LVR 80% :- St. George
IP 2 Loan amount $440k - Value $550k LVR 80% :- Alternative lender
TOTAL LVR 80%