portfolio loan strcuture for investment

Hi everyone,

Just thought I would as what people think of the portfolio loan structures? I have heard some banks offer these where you can apply for a limit say 1 mil, and later you can repurpose the loan without having to refinance and hit your credit score as long as the total lending stays the same? Aus wide and st george have been recommended to me?

Has anyone had any experience with these?

Looking at getting a secured loan to use for purchasing a business and property what lenders do people suggest for competiveness and future structuring? Is a line of credit still viable? the rates don't seem to great here atm?

 

Also called a global or master limit. I have one with AMP currently and works fairly well. To change a split limit (or create a new split) it's a fairly straight forward form.

Regards,

Jason

 

What do you mean 'repurpose'?

I would generally avoid the LOC type loans, aim for a flexible term loan that you can use the same way and add an offset account to now or later when needed. AMP's master limit is great

 

Is the rate competitive?

 

I was thinking a loan so I can utilize it for property. If one is sold can the loan be utilized for another property?

 

Yes, but care must be taken to make sure the interest becomes deductible.

 

I had assumed switch was borrowing against property other than the one being purchased - perhaps this is not the case.

 

Yes I was looking at options of borrowing against another property.