CBA - Veridian Line Of Credit - split option no longer available

Discussion in 'Loans & Mortgage Brokers' started by Kezza, 23rd Nov, 2015.

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  1. Kezza

    Kezza Member

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    23rd Nov, 2015
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    Hi everyone,

    I've been reading your posts for a while now but have only decided to join to get your feedback.

    Today my CBA branch has informed me that I no longer have the option to split my current VLOC to mulitples VLOC for future investment property purchases.

    From now on, I now have to apply for a new application and the current unused VLOC limit is removed with the new application processed under the Bank's current criteria for investment purposes.

    Will it matter if my future investment purchases are all in one big VLOC (20% deposit plus purchase costs) provided I keep figures and my accountant can calculate the interest for each property at tax time?

    Or should I just apply for a new application each time I need to go again.

    Currently got enough remaining VLOC to purchase two more properties in the $300K price range.
     
    Kezza, 23rd Nov, 2015
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 23rd Nov, 2015
    #2
  3. Kezza

    Kezza Member

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    Thank you Terry. :)

    I emailed my mortgage broker what you said and she replied...

    "Most of our clients generally have all their deposits in one line of credit and keep track of property expenses in an excel spreadsheet."

    She is with a reputable property group based in Sydney and has experience in property investing.

    I thought that because she is based with this particular property group that she would be an "expert" in this field. Guess I was wrong. :(
     
    Kezza, 29th Nov, 2015
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    She wouldnt know because it is a tax issue not a loan issue.
     
    Terry_w, 29th Nov, 2015
    #4
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    You can still split a VLOC, just not with a normal switch form. Have to go through BDM.
     
    Jess Peletier, 29th Nov, 2015
    #5
  6. Kezza

    Kezza Member

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    Please excuse my ignorance...but what is a BDM??
     
    Kezza, 30th Nov, 2015
    #6
  7. albanga

    albanga Well-Known Member

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    Business Development Manager.
    Your broker will have access to a BDM which is basically a person who drives business for an organization.
     
    albanga, 30th Nov, 2015
    #7
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Bondage Discipline Master
     
    Terry_w, 30th Nov, 2015
    #8