Hello,
I have been given a pre-approval of X amount which I can borrow from the bank for my first IP. Now I am left with about 75k of lent funds after I purchase a unit. My question is how can I use this left over funds to correctly purchase a second IP? I'm going to approach a motgage broker (who I already have in mind) and use these funds as %20 deposit and closing costs on the next property. Any advice will be most welcome.
Cheers.
N
I think you answered your own question ie 20% deposit plus costs …
You need to tell us about the IP and also your PPOR so we can see your picture clearer and give some better guidance
… good postHi Tremelo
How was the original amount borrowed? Equity? Line of credit? Same bank for both properties?
Your broker should be able to devise a way of structuring it correctly.
No 1 rule= Avoid cross collaterisation 99% of time.
Hi Tremelo
Post is slightly confusing as you mention pre-approval and then mention that you might look to draw the additional funds down and use them for the next deposit.
Only of doing this would be if the current loan is cross collateralised so i would be thinking carefully and suggest you might want to get some further advice as structure is probably the most important part of the investment loan process.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
