Unfortunately the big banks seem to get away with this kind of thing as consumers seem to either do not know any better or are too lazy to move their banking when they do.

People don’t seem to realise that bitching and whinging about rates doesn’t really do anything, the best way to provide feedback is to move your banking elsewhere.

I understand where you’re coming from Corey.

In fact, personally I would split the collateral and loans as well. However to some people, having a home loan to manage seems like a big gigantic hassle. Was just pointing it out as an option, I wasn’t really suggesting or recommending it.

The benefits, I talked about was for keeping the loans…[Read more]

Hi Jaime

I think I’m being misunderstood here.

I meant one NEW seperate loan against the investment property.

As the OP talked about refinancing his PPOR with a higer amount and using from redraw then another loan against the IP.

Hi Daniel,

Im always happy to hear your feedback and point of view, but please don’t accuse me of what you just said.

As I pointed out, I am an EX bank staff. I have no interest whatsoever in helping banks make more money. In fact if I can help someone save money from the big banks, I would be very happy.

Fact is that if you have a larger…[Read more]

Hi Daniel,

Im always happy to hear your feedback and point of view, but please don’t accuse me of what you just said.

As I pointed out, I am an EX bank staff. I have no interest whatsoever in helping banks make more money. In fact if I can help someone save money from the big banks, I would be very happy.

Fact is that if I you have a larger…[Read more]

Here’s my 2 cents as an ex bank lender

For accounting purposes it would be easier for you to use your PPOR + Investment property as security and have only one loan. However yes you would need to cross collateralise.

There are benefits or keeping both loans in one bank:
– A lot less paperwork needed for future loans.
– If you pay your bill on…[Read more]

I bought for the exact reasons you posted few years back and I would really not recommend doing for that reason.

Although I am happy for the lessons I have learned being a home owner and landlord, I would be in a much better financial position now.

Even though the mortgage might be cheaper than rent, you have to think about all the extra…[Read more]