I am going to use equity in PPOR to fund 20% of first IP.
PPOR accessible equity = 480k
potential IP loan size = 300k
I talked to a Westpac banker and also customer rep of SCMC (State Custodians Mortgage Company) about their "professional" package
The features I am interested in are offset account and minimise loan setup fees.
Here is what I have found
---Rate---
Westpac: 7.09% - 0.85% = 6.24%
SCMC: 6.02%
* with a loan of 300k, the difference is 300k x (6.24%-6.02%)=$600/year
* SCMC offers further 0.25% loyalty discount after 5 years
---Loan setup fee---
Westpac: $0
SCMC: $0
* same
---Annual fee---
Westpac: $398
SCMC: $345
*not huge difference
---Cross collaterisation---
Westpac: Westpac banker told me that it is possible to have separate "standalone" sub-accounts for my PPOR and IP so that they are NOT cross-collaterised
SCMC: SCMC customer rep told me that if I put multiple properties under one package, they MUST be cross-collaterised
* this implies that if I want to increase your loan with SCMC, all properties must be re-valuated with valuation fee of $275 per property
* SCMC suggests me to take out 2 of their professional packages (1 for my PPOR and 1 for my IP and pay 2 x $345 annual fee of course) to avoid cross-collaterisation
Questions:
1. regarding cross-collaterisation, can anyone with multiple properties under Westpac's professional package comment on whether you can selectively pick which property to re-valuate to top up loans?
2. will "all monies" clause ever be used by Westpac even if properties are under separate sub-account but under the same professional package?
3. SCMC's suggestion regarding taking 2 of their professional package to avoid cross-collateralisation, I see it as pointless as "all monies" clause still enables them to do whatever they like to both properties. Your comments?
Thanks
PPOR accessible equity = 480k
potential IP loan size = 300k
I talked to a Westpac banker and also customer rep of SCMC (State Custodians Mortgage Company) about their "professional" package
The features I am interested in are offset account and minimise loan setup fees.
Here is what I have found
---Rate---
Westpac: 7.09% - 0.85% = 6.24%
SCMC: 6.02%
* with a loan of 300k, the difference is 300k x (6.24%-6.02%)=$600/year
* SCMC offers further 0.25% loyalty discount after 5 years
---Loan setup fee---
Westpac: $0
SCMC: $0
* same
---Annual fee---
Westpac: $398
SCMC: $345
*not huge difference
---Cross collaterisation---
Westpac: Westpac banker told me that it is possible to have separate "standalone" sub-accounts for my PPOR and IP so that they are NOT cross-collaterised
SCMC: SCMC customer rep told me that if I put multiple properties under one package, they MUST be cross-collaterised
* this implies that if I want to increase your loan with SCMC, all properties must be re-valuated with valuation fee of $275 per property
* SCMC suggests me to take out 2 of their professional packages (1 for my PPOR and 1 for my IP and pay 2 x $345 annual fee of course) to avoid cross-collaterisation
Questions:
1. regarding cross-collaterisation, can anyone with multiple properties under Westpac's professional package comment on whether you can selectively pick which property to re-valuate to top up loans?
2. will "all monies" clause ever be used by Westpac even if properties are under separate sub-account but under the same professional package?
3. SCMC's suggestion regarding taking 2 of their professional package to avoid cross-collateralisation, I see it as pointless as "all monies" clause still enables them to do whatever they like to both properties. Your comments?
Thanks
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