X-Coll and building large property portfolio

So I should wait until both properties settle and find another broker to refinance? How do I determine if the broker has clawback fees? Do I just ask him?

Hmm its hard to tell cceasy - trying to find how far down the process you are exactly.

Are you about to settle? If so, its probably too late and changing finances now could tank the deal. If your 3 weeks away +, you should be ok to adjust now.

Re clawback fees, I assume you would've signed some agreement with your broker? (its part of our compliance requirements). It should say it clearly there.

Cheers,
Redom
 
I don't have the contract with at the moment but will check it... So once I check it, what does this mean whether it's one or multiple?

If each loan contract has one individual security on it, it means your not cross collateralised.
 
Are you talking contract of sale for the property or loan documents? When are the settlements due?

Brokers that operate in Sydney are a plenty on this forum.

Cheers,
Redom

So preapproval has been done, when offer was accepted and emailed the broker all the details of the property and then the bank approved it... they sent out the loan contract and that's what I've signed and posted back
 
Hmm its hard to tell cceasy - trying to find how far down the process you are exactly.

Are you about to settle? If so, its probably too late and changing finances now could tank the deal. If your 3 weeks away +, you should be ok to adjust now.

Re clawback fees, I assume you would've signed some agreement with your broker? (its part of our compliance requirements). It should say it clearly there.

Cheers,
Redom

Settlement on the 1st property is the 18th of March so decent time... No settlement date yet on the 2nd... so should I speak to my broker now? If so, what should I instruct him to do?
 
So preapproval has been done, when offer was accepted and emailed the broker all the details of the property and then the bank approved it... they sent out the loan contract and that's what I've signed and posted back

Hmm IMO cceasy, if settlement is <3 weeks, i'd leave it as is.

The magnitude of your problem needs perspective, i think we may have created a bit more fear than necessary. Its not the end of the world and has a very easy fix.

I think your best port of call is to team up with someone who you can trust/works in your best interest and have a plan to move forward with. As part of the plan to get you to your 6 properties, they should also incorporate how to clean up your current cross-x in the cleanest way possible.

Cheers,
Redom
 
Settlement on the 1st property is the 18th of March so decent time... No settlement date yet on the 2nd... so should I speak to my broker now? If so, what should I instruct him to do?

Ah sorry, just saw this. Best to fix it up now with that much time.

Tell your broker that you don't want your loans crossed and for him to go back to Suncorp and make sure each loan has an individual security against it.

Better yet, tell your broker to go a more suitable lender if you've got a month to go on your first and even longer on the second. Get a plan whipped up urgently and then go from there.

Cheers,
Redom
 
Damn I'm kicking myself for not acting on this sooner...

Don't be too hard on yourself! You've been given some good advice in this thread and it certainly isn't an insurmountable problem you have.

Sort it out and give it the benefit of time. When you look back, it will be a tiny blip in the scheme of things and a good learning experience.
 
Don't be too hard on yourself! You've been given some good advice in this thread and it certainly isn't an insurmountable problem you have.

Sort it out and give it the benefit of time. When you look back, it will be a tiny blip in the scheme of things and a good learning experience.

Thanks for your kind words... And thank to all who have replied... SS has been a wealth of knowledge for me
 
Ah sorry, just saw this. Best to fix it up now with that much time.

Tell your broker that you don't want your loans crossed and for him to go back to Suncorp and make sure each loan has an individual security against it.

Better yet, tell your broker to go a more suitable lender if you've got a month to go on your first and even longer on the second. Get a plan whipped up urgently and then go from there.

Cheers,
Redom

Cool doing it now... is there a lender that you recommend I should look at?
 
Ok I just got off the phone with my broker... He seems a little frustrated with my, I don't know why as clearly I don't know exactly what steps I should take but I don't want it X coll... he's saying it makes no differnce if I do or don't... he's asking me what I want to do when I really don;t know what's the best option and he's confusing me even more...

What should I tell him? how can I proceed to best suit my stratgy as he's not giving me the answers I need and really lack of information from his part.

Do I go with line of credit? He said that cost more. so I have no idea what I should tell him

I'm happy to stay with suncorp for just those 2 if it makes it easier on the broker to change?

He said that because I'm using my equity from PPOR and I'm borrowing 100% of the cost cross coll is better otherwise I have to pay LMI... I read somewhere that there other options where you can reduce you lmi or even pay npone if you go down the line of credit i think
 
Cool doing it now... is there a lender that you recommend I should look at?

Its a little hard to say without more info, but I like starting out at ANZ/CBA depending on whether it fits in with ongoing goals and ability to release equity out in future.

Suncorp and ING (MEbank too in the fixed space) are generally 'rate' lenders for brokers - generally use them for FHOB or set and forget investors. Their servicing calculator makes it too difficult to use for serious investors with lofty goals (multiple properties).

Cheers,
Redom
 
General consumer tip regarding clawback fees: If the broker hasn't disclosed this upfront in a credit quote which you have to sign, you don't have to pay it.

cceasy: Right now you're freaking out because myself and a few others have given you some advice based on fairly limited information. For all we know, your broker has done everything right but you've misunderstood things and we're giving you bad info based on this.

I don't think this is quite the case, but rather than have a back and fourth all day, it might be better to pick up the phone and talk through everything with someone. At this point we know the general scenario, but we don't have any knowledge of the specifics of any deal. It's hard to give the best advice based on limited information. It'd definitely not possible to recommend a lender without knowing a lot more about you and the deal.
 
What should I tell him? how can I proceed to best suit my stratgy as he's not giving me the answers I need and really lack of information from his part.

He said that because I'm using my equity from PPOR and I'm borrowing 100% of the cost cross coll is better otherwise I have to pay LMI... I read somewhere that there other options where you can reduce you lmi or even pay npone if you go down the line of credit i think

Tell him thank you for your time but his services will no longer be required, this brokers doesn't have a clue. He's gone against your instructions to keep PPOR with ING, refinanced for his own good along with simiplified the immediate process from himself by x-coll your borrowings, this will work against you if you're looking to build a large portfolio.
 
General consumer tip regarding clawback fees: If the broker hasn't disclosed this upfront in a credit quote which you have to sign, you don't have to pay it.

cceasy: Right now you're freaking out because myself and a few others have given you some advice based on fairly limited information. For all we know, your broker has done everything right but you've misunderstood things and we're giving you bad info based on this.

I don't think this is quite the case, but rather than have a back and fourth all day, it might be better to pick up the phone and talk through everything with someone. At this point we know the general scenario, but we don't have any knowledge of the specifics of any deal. It's hard to give the best advice based on limited information. It'd definitely not possible to recommend a lender without knowing a lot more about you and the deal.

Thanks Peter.. I would love to pickup the phone and call someone but not sure who to call in my area that is good... Idon't want to call a bad broker and further dig myself into a hole... I just feel confused at the moment
 
Tell him thank you for your time but his services will no longer be required, this brokers doesn't have a clue. He's gone against your instructions to keep PPOR with ING, refinanced for his own good along with simiplified the immediate process from himself by x-coll your borrowings, this will work against you if you're looking to build a large portfolio.

I;ve asked him to email me the options I have if I don;t collaterise... If he could outline the key positives and negatives so I can understand...
 
Thanks Peter.. I would love to pickup the phone and call someone but not sure who to call in my area that is good... Idon't want to call a bad broker and further dig myself into a hole... I just feel confused at the moment

I think you should worry more about who you're talking to rather than whether it's face to face. A few great brokers have given you some pointers, maybe pick one of them & get on with it. :)
 
I;ve asked him to email me the options I have if I don;t collaterise... If he could outline the key positives and negatives so I can understand...

This should of already happened, it's not something that you should be doing or finding out after. You don't want to have the loan x-coll.
 
Crap I'm freaking out now

Don't think thats required, I'm about to uncross loans from NAB on 5 properties.
Although they are structured poorly it hasnt stopped us from purchasing lots of properties since these first NAB loans
Didn't know any better at the time and are fixing it now
 
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