Can/should I see a broker?

Hi PCers

Lately been contemplating buying IP3. Previously I have rung my bank and asked how much they would loan me. The result is cross collateralisation (IPs and PPOR) but no LMI/deposits. I am happy with my interest rates but I know from reading this forum that xcoll is to be avoided at all costs.
Early this year i fixed 2 of the loans for 3 years.
So.... is it worth seeing a broker and rejigging things or should i just approach my bank, borrow then sort it out in 3 years? Im assuming im "locked in" with my bank for another 3 years for current loans and "rejigging" will involve costly refinancing. The main reason I haven't spoken to other banks/brokers in the past is the vast amount of paperwork that I have had to provide each time. Current bank already has the bulk of this. I also dont want to waste a brokers time or mine (vast paperwork).

Cheers, Nat

 

It is difficult to uncross once xcoll'd. See a broker. Going direct to the bank is generally not in your best interests for the following reasons :

• You are far less likely to encounter someone at the bank that understands the consequences of xcoll to YOU. Also they're unlikely to understand tax implications of different structures.
• You are only exposed to one lender when you go direct to the bank, whereas a broker deals with many lenders each day and knows which ones will look more favourably on your circumstances at the moment. For instance, you might be a contractor, and a particular lender might not fancy lending to contractors at the moment, so there is no point applying to them and copying a declined application stamp on your credit file.

With that, choose an investment savvy broker... not necessarily one that happens to work down the road from where you live. There are some great brokers on the forums to choose from.

 

Yes you should.
Call any of the ones on here.

A good broker works for you.

The bank works for the bank.....

 

Hi @Nattl3s two properties are not difficult to uncross, but if more properties are added into it, it only gets harder. It the current restricted lending environment crossing could be a serious problem, so sort this out sooner rather than later if you want to keep investing.

Fixing means you either need to wait for the fixed rates to expire, or break the fixed rates to uncross. It is possible to access the equity in your existing properties without uncrossing them whilst there's only two properties in the mix.

The other problem is that your existing lender is probably going to run out of steam eventually. It's incredibly rare that a single lender can meet all of your needs throughout your investing career.

 

Thanks JacM, Hammer and Peter
I will contact a Brisbane based broker recommended on this forum and have a chat with them. Things are definately getting more complicated and I think my DIY approach is no longer suitable. My bank will def xcoll a new property.
Cheers, nat

 

@Nattl3s Would you like the name of an excellent broker in Brisbane to get started?

 

They release funds into wrong accounts all the time I've heard, anything is possible I guess.

 

Sure, thank you. I already had someone in mind before posting but happy for a recommendation.

 

So I was none the wiser for PPOR and IP1 (IP1 was accidental-in that it was my 1st PPOR and everyone said dont sell). Then the 'penny dropped' about investing and i discovered SS. When I went into bank for IP2 financing 2014 I was very firm about no xcoll but I got talked into it because no LMI/deposit etc etc so in the end it all sounded very reasonable and so i signed.
.... im with NAB.... Dont have tons of equity though. That 'old property doubles every 10 years' is not true in my particular property experience.

 

If you're fixed you can still get equity out but uncrossing with NAB while on a fixed rate will cause you issues. If there's any equity you can still get it out while it's crossed and fixed. Just make sure that whatever you buy now won't wipe out borrowing capacity to the point you won't be able to untangle it afterward.

 

Ian Morgans mortgage broker - Loan Market
Ian Morgans

He's very very very good, and most importantly- honest. I regularly send people to him just for advice and he's more than happy to help without trying to close you into a deal.

 

Thanks all, broker it is.
Cheers