G'day All,
Correct me if I'm wrong but borrowing against your PPOR and using your PPOR as security are actually two separate / different things, even if the end result is the same.
One might offer the PPOR as security when the LVR doesn't make sense to the bank. Alternatively, one might set up a LOC against the PPOR to fund entry into an IP which is what people are discussing here.
This is the classic spruikers line: "Norm, use our financial services! That way if you run into problems with payment, they can't get at your house"
This is a blatant lie to get you to finance through them. I've heard lots of them say it - TIC, CWB......
Yeah right, every day is pay day at the bank! Fortunately, if the risk pays off you put yourself in such a position that you don't have that worry anymore.
Correct me if I'm wrong but borrowing against your PPOR and using your PPOR as security are actually two separate / different things, even if the end result is the same.
One might offer the PPOR as security when the LVR doesn't make sense to the bank. Alternatively, one might set up a LOC against the PPOR to fund entry into an IP which is what people are discussing here.
I'm not entirely sure of this, so someone please correct me if I'm wrong - but let's accume you default or worse get an IP forclosed and sold by the bank etc. If there is still money owing, the bank will come after any other assets you have whether they're X-col'd or not. If it's in your name it's fair game.
"
This is the classic spruikers line: "Norm, use our financial services! That way if you run into problems with payment, they can't get at your house"
This is a blatant lie to get you to finance through them. I've heard lots of them say it - TIC, CWB......
Yeah right, every day is pay day at the bank! Fortunately, if the risk pays off you put yourself in such a position that you don't have that worry anymore.