Just a quick question, I have one investment property with one bank can i use that equity to buy another property with another bank.
quick answer. Yes
How are you calculating equity? i.e what's the loan amount and the value of the property?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
the loan remaining is 284,000 and the valuation of the property is 380,000.
Ok so at an 80% lend you have $20k in equity to use and at a 90% lend you have $58k (minus the LMI payable) in equity. Don't forget to set up the facility as a standalone facility instead of topping the existing loan.
Who did the valuation?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
thanks the bank did the valuation. Yes ill get a completely separate loan for the new property. Is that what you meant by stand stand alone. What i plan to do is get a 95% lvr using the equity from my IP and pay LMI with money i have. Is there any thing i should be aware of before i do this, This is my first time using equity, Will it effect my existing loan in any way with regard to repayments and the like. Any additional information would be greatly appreciated
Some banks will not allow you to go to 95% on existing loans whereas some lenders will if you are refinancing.
If you are taking out say $40k against your existing property and the existing loan is $284k then you need 2 loan accounts. One for $284k and the other for $40k. Then you will have the third loan which is for the 2nd property.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
thank you very much for your help
DOUGADCOCK wrote:thanks the bank did the valuation. Yes ill get a completely separate loan for the new property. Is that what you meant by stand stand alone. What i plan to do is get a 95% lvr using the equity from my IP and pay LMI with money i have. Is there any thing i should be aware of before i do this, This is my first time using equity, Will it effect my existing loan in any way with regard to repayments and the like. Any additional information would be greatly appreciatedYou should seek some advice on the tax consequences from doing that.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If you're doing an equity release against your current IP to fund another IP – you might not need to set up a second loan split for the equity because it's all IP related.
However, if you're using the IP equity to purchase a PPOR or think that you may treat either property as a PPOR in the future, then you'll need to set up the equity release as a separate loan split.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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