Hi all,
A question re-getting investment loans refinanced with a different lender to the PPOR loan-
Apart from our PPOR, we have two investment properties. Both properties are cross-securitised (is that the word??) to the PPOR.
We want to separate our investment loans from our home loan. All loans are with the one lender who, while giving a good deal, isn’t generous when it comes to investment lending. This lender is more tailored for PPOR loans than investment loans and we are being held back on our investment goals.
Having bought well and held the 2 investment properties for 1 and 2 years, we’re confident they would now be valued at more than we paid for them. So we want to not only separate these loans from the PPOR loan, but also – if possible – access the equity in the investment properties to buy again.
So – what is the process for getting loans refinanced? And if getting professional valuations done, what should we expect to pay?
I’m just not sure of the steps you need to take to do this.
thanks,
CarlinHi Carlin
We are in the process of doing the same thing. We went to a broker to help sort itout. We have 1 loan (2 LOC, 1 for our home and 1 for investments) for our own home and have joined the two IP’s together in another loan and have a pre approval for a third loan for the next IP.
It can take a while to get it sorted as the bank you have your three properties with now will probably take their time surrendering your loans and splitting them out.
Patience.Hi Carlin
What you would need to do is to decide on the new lender, apply and wait for the valuations to come in. If there is enough equity in there (and you service) than you can, maybe, have a loan for the existing property and a split for the extra equity.
Once the deal is approved, the new lender will payout the old lender and titles will be brought across.
Terryw
Discover Home Loans
Parramatta
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Hi again,
We want to keep our PPOR loan with the current lender, and move the two investment property loans to a new (more investor-friendly) lender.
Do I need to organise for the valuations to be done, or will the new lender (who we are yet to choose) do that? And who pays for these valuations?
Also – Terry – I’m not sure what you mean by “a split for the extra equity”.
And – Transnod – you say you have both your investment properties joined in one loan. I’m wonder what the advantages and potential disadvantages there are in having one loan for two properties.
Sorry, but I find this stuff really confusing.
thanks again,
CarlinHi Carlin,
I actually work for a lender who I will keep nameless.I have dealt with this situation on many occasions.
What you can do is if you are only wanting to refinance the investment properties is to seek the services of a lender either through a broker or the lender directly and they will look through your scenario (there is no charge!) and the lender will be able to provide you with an indicative approval that they will be able to do the loan for you and disclose the rate etc. Then if you are happy with that the lender can arrange a valuation for the investment properties and at the same time you can advise the existing lender that you wish to partially discharge the 2 investment properties from the loan and keep the existing PPOR.
Once that is complete it is just obtaining payout figures for the properties and determining the equity you will have available. Once all that is arranged there should be no problems.
Also with cross-securitised you are getting confused as it means that the properties have individual loans and if you default on one of the loans you actually default on all three. Also, known as cross-collateralised. [fez]
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