G'day All
I have one investment loan covering several properties. (I now know that this may not be such a good idea but that's another issue). All of the properties used as colateral for this loan are income producing except one which is a vacant block of land. The vacant land was used to bring the LVR down to avoid loan mortgage insurance. The value of the land covers approx 15% of the total loan value.
Can anyone give me an idea what sort of penalties the bank is likely to use if I sell the block? The loan was only restructured this way early this year and is fixed on a twelve month honeymoon type deal.
Would the whole loan have to be re-financed?
Would we just have to deposit some of the sale proceeds back into the loan to maintain the LVR?
Would we be restricted from doing anything until the twelve month period is up?
Is the bank likely to charge heaps of fees to do any of the above? ........yeah, that is a silly question.
Any ideas would be appreciated.
Cheers
Rick
I have one investment loan covering several properties. (I now know that this may not be such a good idea but that's another issue). All of the properties used as colateral for this loan are income producing except one which is a vacant block of land. The vacant land was used to bring the LVR down to avoid loan mortgage insurance. The value of the land covers approx 15% of the total loan value.
Can anyone give me an idea what sort of penalties the bank is likely to use if I sell the block? The loan was only restructured this way early this year and is fixed on a twelve month honeymoon type deal.
Would the whole loan have to be re-financed?
Would we just have to deposit some of the sale proceeds back into the loan to maintain the LVR?
Would we be restricted from doing anything until the twelve month period is up?
Is the bank likely to charge heaps of fees to do any of the above? ........yeah, that is a silly question.
Any ideas would be appreciated.
Cheers
Rick