portfolio loan strcuture for investment

Discussion in 'Loans & Mortgage Brokers' started by Switchtronics, 8th Jan, 2020.

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  1. Switchtronics

    Switchtronics Well-Known Member

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    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?
     
  2. JasonC

    JasonC Well-Known Member

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    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
     
  3. Terry_w

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

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    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
     
    Lindsay_W likes this.
  4. Switchtronics

    Switchtronics Well-Known Member

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    Is the rate competitive?
     
  5. Switchtronics

    Switchtronics Well-Known Member

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

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

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

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Smells like a need for portability or substitution to me, rather than Global limit

    ta

    rolf
     
  8. Terry_w

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

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

    Switchtronics Well-Known Member

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

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