What's involved in un cross collateralising

Hi

I currently have 3 investment properties all cross collateralised against my PPOR with CBA.
What's involved in setting the structure right (all my properties now have LVR of below 80%)? I mean in terms of cost, effort and paperwork?

Thanks
Brent

 

Hey Brent,

Paperwork is the same as one application, although one lot of signing for each new loan.

Cost shouldn't be anything other than discharge fees, applications fees, and government charges - same as if you were refinancing generally. Many lenders are offering rebates to help cover these costs.

There is a bit of effort, but once it's done, it's done.

 

Loan Tip: Uncrossing Crossed Colleralised loans Loan Tip: Uncrossing Crossed Colleralised loans

 

If I stay with the same lender (CBA), should/would they charge me for untangling this mess?

 

If you're already on their package, any costs are probably already covered under your existing annual fee structure.

In most situations uncrossing loans is mostly just a matter of multiple applications to restructure everything. These days the trickiest part is often meeting the servicing criteria.