Unhooking cross collateralised loans

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From: Ajit De Silva


Hi guys,

I have 2 IP's, both of which are cross collateralized to my home loan. I need some advise from anyone who knows the pros/cons of cross collateralisation.

Secondly, assuming that having the IP's on an independent loan is best, how do i unhook the cross collateralisation.

i would appreciate some advise on this.

Cheers

Carl
 
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Reply: 1
From: Rolf Latham


Hi Carl

Really depends on a lot if things like:

Is there enough equity across all properties to have them as self supporting loans?

Do your lenders product rules allow what you are trying to do ? Such as loan sizes etc.

Are there any break fee implications ?

Will your lender give you a realistic valuation on the properties.

Really suggest that you sit with an independant broker or at the very least start with having a coffee with your personal lender and see what noises he or she makes.

Id wager the first answer to your question will be another question. Why ?

Ta


Rolf
 
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Reply: 1.1
From: Ajit De Silva


G'day Rolf,

Thanks for your great advice again.

one of my IP's if re-valued I would envisage at least a $20,000 increase in equity. This would allow the IP to stand on its own.

Another question to you Rolf is, my 2nd IP is an apartment under 30msq, and is c/collateralised with my home.

How would i be able to get this supporting itself as an independent loan?

I have lost faith in most Brokers...do you have any brokers/bank you could recommend?

Cheers

Ajit
 
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Reply: 1.1.1
From: Jude H


Rolf,

Ajit did ask so we won't call it spamming!! Just this once mind you!

Jude
 
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Reply: 1.1.1.1
From: Ajit De Silva


hi jude,

what was that all about? (smile)

ajit
 
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Reply: 1.1.2
From: Rolf Latham


Brokers are like people of all kinds, the good the bad and the ugly :eek:)

What city are you in ?

Rolf
 
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Reply: 1.1.2.1
From: Jude H


Rolf is our most favourite finance broker on the forum :)

Jude
 
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