Which property to use for equity?

G'day everyone,
I went to a broker yesterday to find out which loan is best for me.
PPOR equity is $423K
IP 1 equity is $189K
IP 2 equity is $43K
I am looking at a loan of approx. $364K.
The broker suggested 2 options.
1. Borrow 20% of the purchase price plus costs from the bank I am with using my existing properties as equity and borrow the rest from another bank.
2. Request my bank to release one of my properties and use this property and the new purchase as security for the new loan.
My question is:
Why can't I only use the equity in my PPOR for the purchase? Why my IP'S?
Are these my best options? It is not that I don't trust the broker, it's just I would like more imput from people that may know more. I haven't spoken to the broker as yet because I just received the info. from him today via email.
Any help would be much appreciated.
Many thanks,
Cadbury.
 
Hiya Cadbury

But you can usually access what you like.

id be so bold to set up equity loans on all my securities, and have them all as Sole security.

That way you can use a bit of cash from whichever property you want for the next deal

ta
rolf
 
Sounds like a strange one to me.

Would it be a case of cross collateralisitis gone mad.

Why wouldnt you just have the new IP loan as a standalone loan on the new security and raise the balance of the 20% + costs from your PPOR.

When the new IP has increased in value increase the loan to 80% again and pay down the LOC secured against the PPOR.

Repeat for each property.
 
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