Cross Collateral - a benefit sometimes but ...........

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 9th Jul, 2015.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    be aware of aggregated loan limits etc

    WBC pointing out that XCOLL is a work around to their 80 % IP wall

    But lmi premiums will likely be on aggregated borrowings and other likely issues.

    ta

    rolf


    One or more Investment Property Loan (IPL) products as listed below(either standalone or combined with an Owner Occupied Home Loan or Equity Access Loan)

    At least one security is Owner Occupied

    Normal maximum LVR policy applies (ie not restricted to max 80%)

    All security is Non-owner occupied

    Max 80%
     
    Rolf Latham, 9th Jul, 2015
    #1
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  2. Redom

    Redom Mortgage Broker Business Plus Member

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    On a separate note, i just learnt from a big cross x advocate that brokers don't get clawed back on partial discharges.

    Probably another small reason of incentivisation that leads to deals being structured this way.
     
    Redom, 9th Jul, 2015
    #2
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    depends on lender though

    ta
    rolf
     
    Rolf Latham, 9th Jul, 2015
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  4. poeter

    poeter Active Member

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    Correct me if I'm wrong. Does this mean brokers don't lose their commission should one of the security on x-col loan get refinanced to another lender?
     
    poeter, 9th Jul, 2015
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    Brokers get clawed back if refinanced out within 18-24 months with almost all lenders.

    With ANZ (i think) if you cross x, than do a partial discharge on one of the properties, you won't get clawed back as the other property is there.

    I've only ever done a cross x for a parental guarantor loan a few times so i don't actually know if it works or whether its true.

    Broker i met earlier today mentioned it peripherally, something i never knew. I doubt its big enough to actually distort incentives, but may do so at the margins.

    Cheers,
    Redom
     
    Redom, 9th Jul, 2015
    #5
  6. Eric Wu

    Eric Wu Well-Known Member

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    dodgy policy
     
    Eric Wu, 9th Jul, 2015
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