Moving all properties to one bank for equity release without cross collaterisation

Discussion in 'Loans & Mortgage Brokers' started by couq, 4th Apr, 2021.

Join Australia's most dynamic and respected property investment community
  1. couq

    couq Well-Known Member

    Joined:
    19th Sep, 2016
    Posts:
    279
    Location:
    Melbourne, Australia
    Due to my position currently, I have 3 properties over 3 banks.

    To take advantage of some professional related LMI my MB is looking to move me all to the one bank.

    They will then release equity for a further purchase. (with another bank)
    As the properties will be cash top ups does this mean the houses are not cross-collaterised?

    Any other issues to worry about? Would like to know people's thoughs
     
    twisted strategies likes this.
  2. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,439
    Location:
    Melbourne
    Ask the MB?

    The Y-man
     
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,670
    Location:
    Australia wide
    Can be done even when at different banks.

    If more than one security for the one loan it is cross collateralised
     
    twisted strategies likes this.
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    Doesn't need to be at one bank, but probably just trying to make life easy for you if they are all under the one bank.

    Also it doesn't mean they are cross collaterals, but you should be asking your MB this, or it's noted on the preliminary Assessment.
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia