Two separate loans with one lender or 2 different lenders

Discussion in 'Loans & Mortgage Brokers' started by andy ngo, 26th Sep, 2019.

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  1. andy ngo

    andy ngo Well-Known Member

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    hello all

    As I plan to refinance my existing loan to St george and apply for a new purchase

    is that good to have two separate loans with one lender or refinance with one lender and then apply pre-approval condition with another lender?

    thanks
    regards
     
  2. Terry_w

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

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    Curoch likes this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Depends....

    If you can service both debts with the same lender - then having the two loans with the one bank gets you a better rate and generally only the one pro pack fee. Just keep the loans uncrossed.

    I wouldn't necessarily look to have a different lender for each property - I think that's overkill. But whatever works for each borrower and their longer terms plans.

    Cheers

    Jamie
     
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Depends on the circumstances. Overall I don't think two properties with one lender is a problem and possibly helps you, but better context is needed.

    Make sure the loans are properly structured and aren't cross collateralised, this will keep things flexible for the future if necessary.
     
    fuzzylogic99 likes this.
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    further context is the loan amount

    2 loans at 4 mill each might be best spread on the basis of concentration risk

    ta
    rolf