Need some advise in regards to my loan structures

[DanielG]

Hi All,

I am about to go to my bank for a new loan for my 3rd IP. I need some help in regards how to move forward correctly.

1. My current 2 loans are with the same bank I am applying for a new loan. Is this wise? I was thinking if I have all my loans with my bank it makes it easier to deal with and also allows me some leverage as I accumulate more and more. Should I look for another bank?

2. My two current loans are interest only loans for 10 years, non-collateralised. Is it wise to get another or should I begin looking at a LOC account?

3. It's my 3rd IP, is there anything else I need to know moving forward in regards to loan structures etc etc.

THanks

 

[Rolf Latham]

Hi Daniel

Bit hard to provide any specific advice without some numbers and a fair bit of soft data.

In general, there are a couple of comments Id make.

1. Dont do whats convenient, do whats right..............

2. leverage and exposure. Double edged sword with lenders, sure they will likely give you marginally better rates etc, but at what potential risk to your future opportunities.


There is no right or wrong cookie cutter answer becauses for one borrower its 750 k with the one lender, for another its 3 mill

Perhaps sit with a good independent broker to help map out your current and future needs ?

ta
rolf

 

[DanielG]

Thanks Latham...I am in the process of meeting a specialist, just was curious about ppls thoughts.

 

[Qlds007]

Daniel prey tell us what type of specialist are you meeting with.

Sounded to me like a case of potential xcollateralitis hope it is nothing more serious.

Mr Latham has outlined it well in his repsonse.