x linked securities within "St George Portfolio" product

I have my PPOR & 2 IPs' spread over 4 sub accounts within this product.

all are x linked in various ways, and have been for several years. Im presently applying to "unattach" them from each other.

I think the bank wanted them x linked due to high LVRS, but these Props have now all incresed in value, and I believe each can carry themselves LVR wise.

Is anyone else familiar with this product, and am i doing the right thing?
 
Even with high LVRs there's no reason for 4 properties to be cross collateralised.
* It doesn't give the bank any more security. The properties are still the same value.
* It doesn't generate any additional serviceability for you.

The portfolio loan is unlikely to give you any real advantages unless you're doing something interesting in addition to your property investing. Definitely get rid of the cross-collateralisation. If they won't let you, switch lenders.
 
Even with high LVRs there's no reason for 4 properties to be cross collateralised.
* It doesn't give the bank any more security. The properties are still the same value.
* It doesn't generate any additional serviceability for you.

The portfolio loan is unlikely to give you any real advantages unless you're doing something interesting in addition to your property investing. Definitely get rid of the cross-collateralisation. If they won't let you, switch lenders.

what he said
 
Response from St George Bank Re; PORTFOLIO LOAN.

I rang st george Gold Member service, asked about removal of X linking between accounts, she said no problem, we'll send you the release docs, fill em out and mail back to us. I did.

Below is their response. Does ne one know the portfolio product? Does below sound correct?

Good afternoon Rapael,

We have received your request to vary your loans and securities to stand alone.

Unfortunately the loan product you have does not allow this to occur as it is setup as one loan with sub accounts. What his means is that the properties secure all the loans, and are not individually set to a loan, rather the whole portfolio.

If you wish to split securities, I would recommend you visit a St.George Lender to explain your requirements as they may be able to assist. Your case with our department will be closed.

Kind regards
Nxxx Kxxx
Security Variations
 
Makes sense to me. I've been using this product for a while, and it's actually been quite good:eek:
What they are saying is you have a LOC for $XXX, which is secured against whatever assets you have given to them.
They don't care how many sub accounts you have or how the individual credit limits are allocated.
As stated above, if you want to release a property, you would probably be better just refinancing the lot.
 
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