Hi,
It's my first post here so I hope all knowledgeable brokers reply, thanks.
I am trying to pull out maximum equity from our loans and to set up at least 1 Offset account for the surplus cash from IPs. DO any of you do it? I realise this would be a very general overview but I am more after the right structure, rather than most equity, if that makes sense.
The worry is current broker, recommends providing PPOR (no loan) and all 6 or 7 joint name IPs to one lender. In addition, it is to be the same lender we have all our personal and business accounts with?
The reason stated was below:
As discussed, we will be moving forward with 'X Lender' for the finance in your personal names. This is great as you will benefit from the many things 'X Lender' has to offer including post-settlement flexibility, offset accounts, ease of internet banking, and a cheaper interest rate.
Would you agree with that recommendation? If yes, why and what would be the risks? If not, how would you go about it, would you do it the hard way to pull out equity one by one from each IP including PPOR?
Your feedback is really appreciated, thanks.
General overview (all stand alone loans):
- PPOR (no loan)
- IP 1 (Lender A - 53%LVR)
- IP 2 (Lender B - Account 1 IP - 31%LVR, Account 2 used as overdraft for business - 37%LVR used, total available for 2 Accounts 70%LVR)
- IP 3 (Lender A - 44%LVR)
- IP 4 (Lender A - 62%LVR)
- IP 5 (Lender A - 65%LVR)
- IP 6 (Lender C - 59%LVR)
- IP 7 (Lender D - used as overdraft for business - 13% used total available 70%) This account can pay off Account 2 in IP 2!
The above may represent around $6million in equity for around 60%LVR (adding PPOR).
We are self employed, have provided ALL documentation, so would be full doc loans.
The structure is more complex but we do not plan to refinance 2 trust IPs or any SMSF IPs....
Now would any of you give up the above structure to refinance with one lender, same lender we conduct our business with, where we had no previous loans with?
What would be the maximum equity above you would provide then to one lender, if to different lenders? Basically, I am at loss how to proceed and whom to trust?
Any feedback is welcomed, thanks!
It's my first post here so I hope all knowledgeable brokers reply, thanks.
I am trying to pull out maximum equity from our loans and to set up at least 1 Offset account for the surplus cash from IPs. DO any of you do it? I realise this would be a very general overview but I am more after the right structure, rather than most equity, if that makes sense.
The worry is current broker, recommends providing PPOR (no loan) and all 6 or 7 joint name IPs to one lender. In addition, it is to be the same lender we have all our personal and business accounts with?
The reason stated was below:
As discussed, we will be moving forward with 'X Lender' for the finance in your personal names. This is great as you will benefit from the many things 'X Lender' has to offer including post-settlement flexibility, offset accounts, ease of internet banking, and a cheaper interest rate.
Would you agree with that recommendation? If yes, why and what would be the risks? If not, how would you go about it, would you do it the hard way to pull out equity one by one from each IP including PPOR?
Your feedback is really appreciated, thanks.
General overview (all stand alone loans):
- PPOR (no loan)
- IP 1 (Lender A - 53%LVR)
- IP 2 (Lender B - Account 1 IP - 31%LVR, Account 2 used as overdraft for business - 37%LVR used, total available for 2 Accounts 70%LVR)
- IP 3 (Lender A - 44%LVR)
- IP 4 (Lender A - 62%LVR)
- IP 5 (Lender A - 65%LVR)
- IP 6 (Lender C - 59%LVR)
- IP 7 (Lender D - used as overdraft for business - 13% used total available 70%) This account can pay off Account 2 in IP 2!
The above may represent around $6million in equity for around 60%LVR (adding PPOR).
We are self employed, have provided ALL documentation, so would be full doc loans.
The structure is more complex but we do not plan to refinance 2 trust IPs or any SMSF IPs....
Now would any of you give up the above structure to refinance with one lender, same lender we conduct our business with, where we had no previous loans with?
What would be the maximum equity above you would provide then to one lender, if to different lenders? Basically, I am at loss how to proceed and whom to trust?
Any feedback is welcomed, thanks!