Hi Guys,
My family and I are looking to buy another home, as current home is way to small now.
I already have one house with a loan that is locked in until dec 2012 with Commonwealth Bank.
Pay out fee is $7500.
Equity is about $50,000 in 1st home.
I rang the comm bank and they said they can give us a LOC account but will only give us 80%LVR of home 1. That is only $10,000.
Home number 2 is looking to be about $380k to $400k purchase price.
They will lend me 90% (or 95%) if I use home 2 as a security (xcol). Which means I only need to come up with $6k they said + stamp duty.
I have no current real savings, but can come up with about $10k cash. So looking to use as much equity as I can.
What is the most financially efficient way here.
I plan to put both these house's on interest only loans and rent them out in the future.
I hope I am making sense with all of this, I have contacted a mort. broker in the past and they were no help.
My question is, how bad is it to cross collateralise these two homes if I plan to use them both as investments in the next 5 years.
Cheers
Daniel
My family and I are looking to buy another home, as current home is way to small now.
I already have one house with a loan that is locked in until dec 2012 with Commonwealth Bank.
Pay out fee is $7500.
Equity is about $50,000 in 1st home.
I rang the comm bank and they said they can give us a LOC account but will only give us 80%LVR of home 1. That is only $10,000.
Home number 2 is looking to be about $380k to $400k purchase price.
They will lend me 90% (or 95%) if I use home 2 as a security (xcol). Which means I only need to come up with $6k they said + stamp duty.
I have no current real savings, but can come up with about $10k cash. So looking to use as much equity as I can.
What is the most financially efficient way here.
I plan to put both these house's on interest only loans and rent them out in the future.
I hope I am making sense with all of this, I have contacted a mort. broker in the past and they were no help.
My question is, how bad is it to cross collateralise these two homes if I plan to use them both as investments in the next 5 years.
Cheers
Daniel