Hiya, Quick one. I have my PPoR secured by 1 investment property. On visiting the bank, the Home Loan Manager suggested I can now have the security released, (funny they told me this) hence I can have the PPoR not secured now. Good in that I can sell the IP when ever I like. (and use it as equity) Will only cost me 220 bucks to do so. (Gvnmt charges and $150 to do lodge the form at Land titles) I guess I should go with huh? Anything to look out for?
Hi stuck-at-two,
From what you have said it seems that the two properties were cross-collaterised and the bank has now told you that you can uncross them. This is good as it means you have additional equity, and if you sell the IP you won’t have to pay down the loan on the PPOR, although if there is one this would be the best use for it. If you sell you could be liable for Capital Gains Tax, so be sure to factor that into any decision.
Regards
Alistair Perry
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