Check out this great idea someone has posted on another site:
http://groups.msn.com/PropertyInvestment/general.msnw?action=get_message&mview=0&ID_Message=11422&LastModified=4675474839150273457
Hi all, I have been increasingly alarmed at the number of inquiries into my credit history. At the best of times, lenders are seeing me as heavily geared and a high risk taker when in fact I'm not. The problem has been that in the course of my investing life, I have bought six properties either as sole buyer or with someone else. In that time, I've also sold two. I've refinanced to four different lenders. Ergo, the hyper active appearance of my credit reference. On my last refinance, I took my loans from National to St George Bank. Prior to settlement, I asked my NAB banker if they'd be happy to keep my loans active, and I'll give them the sum of money from St George as a term deposit. The term deposit will secure the loans. Happily enough National agreed. The point being I won't have to apply for another loan when I find new properties to buy, all I have to do is request National for another round of substitution of security. With term deposit, the LVR is dollar for dollar. But when I substitute this with a certificate of title, the LVR will be 80% as per normal, unless I want to pay L.M.I. It has been absolutely beneficial because I don't have to apply for a new loan to settle on a new purchase. In fact, I have just bought a house in Port Pirie, SA without a "footprint" on my credit reference. As far as St George is concerned that loan with NAB has been paid out, unbeknown to them, it is still active. The National is happy because they have the money in their vault. If I default on the loans, they can retire them anytime. They get to make money out of my term deposit, and at the same time, make money off me from the loans. But it is also for this reason that I have to utilise the term deposit as soon as possible, like six months maximum. But I can use this strategy anytime, as often as I like. Angelina PS This subject matter is also in the other forum for those who want to discuss the boring technicalities. I don't want to wreck havoc to the free-flowing enjoyable discussions here.
http://groups.msn.com/PropertyInvestment/general.msnw?action=get_message&mview=0&ID_Message=11422&LastModified=4675474839150273457
Hi all, I have been increasingly alarmed at the number of inquiries into my credit history. At the best of times, lenders are seeing me as heavily geared and a high risk taker when in fact I'm not. The problem has been that in the course of my investing life, I have bought six properties either as sole buyer or with someone else. In that time, I've also sold two. I've refinanced to four different lenders. Ergo, the hyper active appearance of my credit reference. On my last refinance, I took my loans from National to St George Bank. Prior to settlement, I asked my NAB banker if they'd be happy to keep my loans active, and I'll give them the sum of money from St George as a term deposit. The term deposit will secure the loans. Happily enough National agreed. The point being I won't have to apply for another loan when I find new properties to buy, all I have to do is request National for another round of substitution of security. With term deposit, the LVR is dollar for dollar. But when I substitute this with a certificate of title, the LVR will be 80% as per normal, unless I want to pay L.M.I. It has been absolutely beneficial because I don't have to apply for a new loan to settle on a new purchase. In fact, I have just bought a house in Port Pirie, SA without a "footprint" on my credit reference. As far as St George is concerned that loan with NAB has been paid out, unbeknown to them, it is still active. The National is happy because they have the money in their vault. If I default on the loans, they can retire them anytime. They get to make money out of my term deposit, and at the same time, make money off me from the loans. But it is also for this reason that I have to utilise the term deposit as soon as possible, like six months maximum. But I can use this strategy anytime, as often as I like. Angelina PS This subject matter is also in the other forum for those who want to discuss the boring technicalities. I don't want to wreck havoc to the free-flowing enjoyable discussions here.
