i would only use a LOC secured on your current house and then use this as deposits with the main loans for each new property being IO loans.
With that approach all the securities would be cross collateralised which is not good.
Terry, any comment on using loans instead of the loc for the deposits. A mortgage broker that we saw recommended 2 x $60,000 loans with st george for deposits that we can then use for loans at another bank
Thanks everyone for your feedback.
Jamie with the loan strucutre you have suggested I am still a little confused about how I access the equity in the IPs. do i access the equity by increasing the existing line of credit by securing it against the IPs (and isn’t this then cross collaterisation) or do i get a new line of credit for secured against a single IP?
