All Topics / Finance / MERGING LOANS?

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  • Profile photo of chris67chris67
    Participant
    @chris67
    Join Date: 2006
    Post Count: 7
    October 2, 2006 - 12:25 am

    Hi,

    Our lending manager has suggested merging our 2 IP loans into one. Does this have any merit and what would be the implications, if any?

    My immediate thoughts are that we’d have fewer loan maintenance fees and can offset both properties, rather than one.

    Cheers

    Chris

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 2, 2006 - 6:23 am

    If they are both investment loans, then probably won’t make any difference. You may be able to save some small fees, but what would the cost be to do this? any reduction in rates?

    Your proeprties would then be cross securitised. It would be better to keep them separate in my opinion.

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of chris67chris67
    Participant
    @chris67
    Join Date: 2006
    Post Count: 7
    October 2, 2006 - 11:13 pm

    Hi Terry,

    Thanks for your suggestion. We have decided to keep them separate as there’s no real benefit in merging them. Our IPs are currently cross-collateralised, which will be addressed soon too.

    Thanks.

    Chris

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 3, 2006 - 5:40 am

    Hi Chris

    It is not such a bad thing, cross coll. But best to untangle now if you are going to buy more. Its like a ball of string, the more proeprties you cross the harder it gets to untangle.

    Terryw
    Discover Home Loans
    Parramatta
    [email protected]
    Sign up to my mailing list.
    Just send me a blank email, with “subscribe” in subject line.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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