UN cross collateral loans

[zxtc]

Hi all

How does UN x coll your loans actually work?

Currently I have what was a bridging/construction loan that we have had for 4 years after not being unable to sell original ppor we turned it into our first ip and moved into our newly built ppor.

I would now like to UN cross the loans to access the equity in ip1 to buy next ip2 and finish off ppor.

Are the new loan values just worked out at 80% lvr to avoid Mortgage insurance or can you do higher?

Thanks Michael

 

[Peter_Tersteeg]

The right solution will depend somewhat on the existing structure and how the money has been used between investment and personal use. You can go higher than 90% but you'll pay LMI.

If you're in Adelaide, give Corey Batt from XL Financial a call. He's very switched on about this type of thing.
www.xlfinancial.com.au
08 7200 3898

 

[tobe]

how to uncross loans. Take your payslips, 6 months statements, rates notice and ID to your local bank or broker.

Its basically refinancing the loan, either with the same bank, a new bank, or two new banks.

 

[perthguy]

how to uncross loans. Take your payslips, 6 months statements, rates notice and ID to your local bank or broker.

Its basically refinancing the loan, either with the same bank, a new bank, or two new banks.

I have to un-cross two properties later this year. I will be talking to my mortgage broker about my future plans and we will review my whole loan structure to see how best to structure all my loans in view of my future plans. Like tobe says: same bank, new bank or two new banks. Uncrossing is a good time to re-structure everything if appropriate.

 

[Corey Batt]

Hi Michael,

As mentioned, uncrossing the loans is essentially a refinance. This can be refinanced with the existing lender, or another (depending on your current structure and plans moving forward).

Generally you can refinance up to 90%, though there are some which will go up to 95%, or only provide a maximum of 80%.

Use this time to make sure your current finance structure fits with your future plans, especially if you are currently in the acquisition stage of your investment journey.

 

[Aaron_C]

With sufficient equity uncrossing is easy. Throw in a fixed rate, LMI and change in original circumstances and you can have problems.

 

[zxtc]

Thanks for all your info

I guess my problem is plenty of equity in my old home but little in my new ppor which I guess would have to take out lmi.
Will give Coery a buzz.


Cheers Mick

 

[Terry_w]

Thanks for all your info

I guess my problem is plenty of equity in my old home but little in my new ppor which I guess would have to take out lmi.
Will give Coery a buzz.


Cheers Mick

No, you don't have to pay LMI. You can set up a separate split on your PPOR and uncross both loans without changing overall loan totals or changing the amount of deductible interest.