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.
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.