^ dont do that....your pricing from 5-6M and 2-3M is almost the same...give or take 0.05% -0.10% off the rate...which sounds like a lot but placing all your loans with one lender ( esp your business bank) will have the following issues that i can see
- Reduce equity amount
- very hard to "grow a portfolio and take out equity later"
- Even if it's a BIg 4 bank...at $3M+ that lenders DUA is gonna be very weak
- Default risk
- Poor planning
You really need to sit down with your broker and plan it out..you have close to $240k in equity...+ given your portfolio size + self employed ...your probably planning on buying more or growing your business...both requires absolute pat down good planning.
1. Keep all Loans uncross
2. Only PPOR needs offset
3. Spread the loan to 3 lenders...use the hardiest one first OR the one with the lowest equity and move out from there.
4. Keep a good spread of " back end lender with good servicing last "
5. Understand your goal for the next 3-5 years.
What is meant by DUA????
1. All loans are uncross so I will keep it that way, thanks.
2. Why? What if the total loan is drawn down for living not investing? Can this one loan be split into 2 accounts? 1 for private 1 for investing if required? Can I reshuffle the amounts between them?
I think I need additional offset then for the existing ALL IPs, so the interest is not mixed, personal with IP?
The only offsets I have so far are in SMSF, nothing under private investments.
3. This concept is new to me I would hope the broker would know the process and how to proceed?
4. As per 3 above.
5. The goal is to refinance, pulling out maximum equity, clean up the portfolio later in the year with trust IPs, then either place funds in offset or reinvest into 1 IP only under different entity (unsure if SMSF or privately, to lessen the work load).
I have refinanced in the past on two main occasions, one for pulling out 1 security and refinancing it to 80%LVR, and when the 10 year IO loans were converted to P&I, so again to have them as IO.
I have never pulled out equity and used it to buy another IP always providing at least 25% (20% deposit 5% fees).
So I am conservative and frustrated wether it will be done correctly?