How is this classified

[yadreamin]

Hi
I need some clarification on how this particular set up is classified.

PPOR has a line of credit attached.
No other monies owing on PPOR.
Line of credit funds were used to part fund an ip purchase.

Is this use of LOC or the bank l have drawn the LOC from classified as a mortgagee over PPOR?

We are changing the Strata title and l need to notify any mortgagee.

Thanks and l hope l have made this clear enough to follow.
cheers
yadreamin

 

[StuartW]

Yes, as a lenders has a mortgage over the property (doesn't matter if its investment or not).

 

[turk]

The bank has a mortgage over your PPOR for the line of credit.

But is the change to the strata over your PPOR or IP?

If it's to the PPOR you need to notify the bank.

No if the change is to the IP.

Cheers

Pete

 

[Peter_Tersteeg]

A lot of people have a perception that a line of credit isn't actually a home loan. It is a home loan, it's secured by property.

 

[yadreamin]

The change of strata title is to PPOR.
So do l need to notify the bank who l get the LOC through or the bank that holds the ip that the LOC was used to part purchase the ip?
Or both?
cheers
yadreamin

 

[turk]

Notify the bank who you have the LOC through.

Cheers

Pete

 

[yadreamin]

Thanks turk l will do.
cheers
yadreamin