Hi all
Up until today I havn’t thought about using the equity in existing properties to put on other properties. But a friend of mine suggested it is a good way of getting more property.[
]What does refinancing require and how much does it cost to do this sort of thing? Under what conditions are the banks happy to refinance your properties?
I don’t think I will do it just yet. But, I would like to know more.
Cheers[
][^][]There are two ways to go.
Cross collaterising where the bank uses both properties to secure both loans. There is nothing wrong with this however many more sophisticated investors looking at buying multiple properties choose to avoid it.
The second is to raise the current mortgage by enough to cover a 20% deposit and costs and then taking a seperate loa with the same or another bank to buy the new property.
Costs? Will depend on how much but consider.
Borrowing costs, Stamp duty, legals, and Inspections.
hope this makes sense.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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