It seems all the banks are being conservative when it comes to cash out to be used on another property that won't be financed with them.
I even found this when looking to cash out to only 80% LVR, had such a hard time with NAB about it. Firstly was told that we couldn't do it at all, then only after talking to the higher level manager were we permitted to set up a second loan secured against the same property to pull the LVR up to 80%. They also wanted all sort of information about what we wanted to do with the extra cash. We were told that this sort of thing was "very unusual", yeah right. It seems the usual cause is to just take out anothermortgage with them for your other IP, can cross-collaterise like crazy. Yeah right.
I even found this when looking to cash out to only 80% LVR, had such a hard time with NAB about it. Firstly was told that we couldn't do it at all, then only after talking to the higher level manager were we permitted to set up a second loan secured against the same property to pull the LVR up to 80%. They also wanted all sort of information about what we wanted to do with the extra cash. We were told that this sort of thing was "very unusual", yeah right. It seems the usual cause is to just take out anothermortgage with them for your other IP, can cross-collaterise like crazy. Yeah right.