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Structuring the loan

Discussion in 'Property Finance' started by teetotal, 24th Jan, 2016.

  1. teetotal

    teetotal Well-Known Member

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    7th Nov, 2015
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    Sydney
    I've got a couple-friend who's got a 1.2mil valued PPOR almost paid off (only 80K left to keep the loan alive). Also got 40K in offset.
    They have just paid a cash deposit of an IP they are purchasing for $640K, which will become their PPOR in 12months.
    How can they structure the loan without x-colling ? they want to borrow full 640K.

    Cheers,
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    teetotal likes this.
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Step 1: Submit one application against the PPOR property and pull out the equity at 80% or as much as servicing permits. Ensure that this is NOT a top up but a separate loan facility/account. Create 2 splits - one for future investments and one which covers 20% deposit plus stamp duty charges for the new purchase.

    Step 2: Submit a separate for the purchase of the new property @ 80% of the purchase.

    This will ensure the loans are set up correctly, they are not cross securitised and concurrently you have pulled out equity to use at a later stage.
     
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  4. teetotal

    teetotal Well-Known Member

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    Sydney
    Thanks guys