1 big loan or 3 little loans?

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waynel2
Member
@waynel2
Join Date: 2004
Post Count: 311
April 5, 2005 - 1:15 pm
Another question related to refinancingâ€¦
If I refinance, I have the option to roll my 2 existing loans and my new loan into 1 big loan… which would save me on setup fees etc on the 3 individual loans – though if I do this, would this effect my ability to negative gear the individual properties if thereâ€™s just one big loan for the 3 IPs (eg, none of them having independent loans)?
Cheers
Wayne
Wayne Leech
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Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
April 5, 2005 - 4:35 pm
Rolling all loans into One would involve cross colaterising your portfolio, something you may regret at a later stage.
Keep them separate. Cheers.
Regards
Steven
Mortgage Broker
Mobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.au
PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
April 5, 2005 - 10:08 pm
Consider a professional package which will allow you to keep the loans seperate but pay no application fees.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 6, 2005 - 2:52 am
Having one big loan may save you a few dollars up front, but it can get messy – especially if one loan is for an owner occupied house. Even for investments, you would have to apportion interest per property at time time (which won’t be that hard if all are IO). However, what if you want to sell one property or to refinance it with another lender. This is when you will wish you had 3 stand alone loans.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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