Hi Guys
I am in a pickle with structuring my loans as ANZ has Xcoll 6 IP against my own home, which I own. On brokers advice I am in the process of getting titles back on my own propery as there is enough LVR to leave the rest with the bank. My aim is to move on and be able to borrow more money to buy more property.
Went to Wizard Home Loans as I am in the process of buying another property and they have approved the finance for this 100% plus costs (at 6.63% int rate), but want to take this new property plus my own home as security and they have offered me up to the value of the equity in my home to access when I want to as well.
Now I am wondering if this is the right thing to do – borrowing against my own home as I know ultimately it is best to keep your own assets free. But I don’t know how else to progress as the ANZ were very unhelpful.
I am planning to use the equity draw-downs to fund deposits for other properties with other lenders. Is this allowed? I am afraid to ask this question to Wizard in case they frown on it but they did say I could use the draw downs for anything – world trips etc.
Anyone had any experiences or legal knowledge with Wizard or these types of loans as I am getting cold feet now and wondering if I am putting my own property at risk?
Looking forward to some encouraging replies.
Anita
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