Refinance PPOR and IP....same lender? Does equity draw deposit go with IP?

Wanting to refinance IP and PPOR which has a small equity draw loan that was used for the IP deposit.

- If I refinance, should I add the equity loan deposit on to the main IP loan amount and take it off the PPOR now? I realise that portion would attract higher rates, but is it worth it to split the properties completely (enough equity in both now to do so without LMI).

- Any benefit to putting the loans with different lenders (and is that possible if there is an equity draw for the IP deposit portion on the PPOR)?

- Any reviews on St George, ME Bank, Macquarie? (looking for lower interest rates than CBA but also a bit more play with borrowing capacity as close to CBA limit)

 

Practically speaking it would be easier to do it with the one lender and with St George / ME you'd possibly benefit from sharper pricing based on aggregate loan size.

Equity release against the OO for the INV deposit/costs and then a new 80% loan for the INV is a very common way to structure it. Best to avoid cross secure. Seek specific advice of course.

Macquarie is fantastic but if you're at the borrowing capacity limit with CBA they may not work in this instance.

 

It could be good to tidy it up
Tax Tip 36: Consolidating Loans for investment properties Tax Tip 36: Consolidating Loans for investment properties

But if it will result in higher interest rates you should perhaps be shuffling more of the loan over to the main residence.
Strategy: Borrow Against the Main Residence for an Investment Loan (Shuffling Loans Around) Strategy: Borrow Against the Main Residence for an Investment Loan

There is an asset protection benefit if you start missing payments - how remote would that be?
Legal Tip 242: Why is it safer to get all loans with a different lenders? Legal Tip 242: Why is it safer to get all loans with a different lenders?

Mac are pretty good

 

Does Macquarie have a $1500 application fee or would it be a typo in the info mb gave me (++ $363 legals)? This seems so much higher than any of the others I've been quoted....especially when St George, Suncorp & ME offering the $3k rebate, whereas Macquarie doesn't (only one, not per loan apparently).

Mb says loan options are Macquarie, along with Suncorp, St George, ING & ME - apparently ING is the only one real tight for servicing, the others might have 30k or so to play with? Is Macquarie tricky to get a tight lend like this over the line?

 

no

 

Yes it would be a good ideal to rebalance the loans if you can. No point having additional loan against your PPOR when the INV can support it.

Keeping the loans under one lender isn't a bad thing as majority of lenders price loans based on total amount while some are LVR based ( eg Mac bank)

Borrowing capacity out of the lenders mentioned, you'll probably get better luck with St G.

 

There are several points, 3 off the top of my head
a) allows lower interest rates potentially,
b) allows a property to be sold without paying back its loan (important as a retirement strategy and loan recycling strategy, estate planning strategy)
c) safer potentially

 

I was quoted that in the calculations for the investment IO loan, not the PPOR loan (“Basic Flyer Home Loan Variable (Construction) Interest Only”)

 

that is an important thing to leave out!

 

Sorry, I meant is it standard for their IP/IO loans as in do they only offer the one option, which has with $1500 +$363 fees....this is an existing IP, not construction...but assumed maybe that was all they have for IP if that’s what was being quoted to me?

 

If it is a construction loan there would be higher fees, but not that high if not construction.

 

When you say the lenders base on 'total amount' do you mean the properties are cross-collateralised, is that one big split loan for both?
Currently I have 2 separate loans, one for each property, plus an equity loan draw off PPOR which was used for IP deposit, but as far as I was aware (and requested) they aren't tied up together in any way? New broker wants to combine the total $ of all 3 property related loans against the total 2 valuations to get a better LVR (below 70%, whereas IP alone would be 80.5% if the equity deposit is taken off PPOR main loan and joined to it) and then split it into amounts.....I've repeatedly said I do not want the properties crossed/tied up together in any way (except the equity deposit, I'm prepared to keep that separate on PPOR as it has been if needed), but this keeps getting pushed on me as the only alternative......correct me if I'm wrong, but this set up is tying up both properties together and doing what I don't want isn't it?? I can't understand why I do what I did before (even if I have to pay LMI on that .5% to join the IP loans), or am I just not being given the option? Time to find a different broker??

Is Mac Bank total LVR for all loans or per property? And re St George....I haven't heard a lot of good things, the opposite....would you recommend them in your experience (for a few reasons I may be stuck with whoever I go with for 4yrs or so in case they are hopeless!)?

 

They shouldn't be crossed ideally and it can be avoided with a lower rate too.