How to extract equity out of a property?

[val1239]

Hello

I have one property which I purchased about 3 years ago.

I am looking to buy another one by using equity (if any) from my existing property. My current loan is with Westpac.

I went to Westpac, they said in order to value and see how much we can pull out they would need to apply for another loan for me. If I wanted to value it myself, I would have to pay an independent valuer (Herron Todd White).

My question is:

Can I take equity out of my existing property at Westpac and then go to another bank and apply for a loan there to avoid cross collaterization?

Is it somehow possible to get my property valued without applying for a loan? What is the cheapest way?

Any ideas? Past experience?

Many thanks

 

[Aaron_C]

Can I take equity out of my existing property at Westpac and then go to another bank and apply for a loan there to avoid cross collaterization?

Yes.

Is it somehow possible to get my property valued without applying for a loan? What is the cheapest way?

Get an upfront valuation done by a broker.

 

[Shahin_Afarin]

few banks have free upfront gals - so may be worthwhile getting a few to see how much equity you could tap into at different banks.

Each bank will use their own valuer - so you can't really use a valuation reports from bank A and take it to bank B. Having said that - bank B may use the same valuer as bank A.

 

[val1239]

Yes.

How?

 

[val1239]

would i just go to NAB or ANZ or whoever and ask them that i want to take equity out of my existing property etc?

Cheers!

 

[Corey Batt]

Get an upfront val ordered via broker.

By the way, you can avoid cross col and still put the purchase with westpac. Just need to have the securities seperately linked to their associated liabilities.

 

[Shahin_Afarin]

you go to westpac and grab the equity at 80% or 90% lend depending on whats needed and then you go to the new bank and grab the 80%. Then you have tax deductibility on 105% of the loan - assuming its an IP.

 

[Aaron_C]

How?

Either going to Westpac again with a separate application or going to a different lender. It's not hard.

 

[jonmardell]

If you get the equity out of westpac to take to another lender to borrow for the new purchase make sure the extra funds you get from westpac are in a separate loan account and not just an increase to keep it simple for tax purposes. You can get valuations upfront from westpac.

Hello

I have one property which I purchased about 3 years ago.

I am looking to buy another one by using equity (if any) from my existing property. My current loan is with Westpac.

I went to Westpac, they said in order to value and see how much we can pull out they would need to apply for another loan for me. If I wanted to value it myself, I would have to pay an independent valuer (Herron Todd White).

My question is:

Can I take equity out of my existing property at Westpac and then go to another bank and apply for a loan there to avoid cross collaterization?

Is it somehow possible to get my property valued without applying for a loan? What is the cheapest way?

Any ideas? Past experience?

Many thanks