hi all
im looking to borrow a 2nd ip, but not sure whats available out there in terms of the 'bells and whistles' that come attached with the various loan packages. Can anyone help with letting me know the 'must haves' as part of a new loan?
Thanks in advance.
Hi Pirate
The requirements for financing an IP will vary from client to client depending on numerous variable i.e client has a loan on their PPOR / interest rate sensitive / fixed or variable / offset or basic / fee sensitive / buying in Trust or personal names etc etc etc.
Without more information on your own circumstances it is difficult to provide you with a recommendation.
Certainly one think i would do is make sure that the loan is not cross collateralised with your other properties.
A good mortgage broker will take the information from you and then make a recommendation on something that will suit your circumstances and position.
Richard Taylor | Australia's leading private lender
Yep – keep the loan as a 'stand alone' one regadless of the Lender. There are some terrific 'basic' variable loans available at the moment. Up to 7 or mor e% below the standard rate, without paying annual or monthly fees. If you do not need an offset account, and or are not planning on using redraw (likely the case if it is an IP, and you are still paying off your own home loan elsewhere) I think they make pretty good sense at present. All the best.
thanks folks
completely didnt realise the cross collateralising part until i read your posts. Now im really glad i asked a basic question.
Will let you know how i go with things as im in the process for ip2.
Let us know how you go pirate as it will be interesting to hear what your Bank tell you about X Collateralising.
Richard Taylor | Australia's leading private lender
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