Hi there,
I wish to evaluate weather this is the right time to uncross securitise my home and investment property.
St george has the two loans.
My home is LVR 56%, IP is LVR 95%, Both properties together, securitised, LVR is 79% and St george is happy with this at time of financing.
After one year, properties have been valued by Homeside, NAB to be the same. A broker in Sydney has organised for Homeside NAB valuations. He tells me he can uncross securitise my home from the IP.
Im getting a bit worried about how all this will work.
I think that Home side would refinance my home (with current LVR 54%) and take out the equity and put the lump sum into the IP mortgage (current LVR 95%) with St george.Can this happen smoothly? What can I expect from St george when NAB refinances a property currently with St George and is cross securitised with an IP on a 3 year fixed rate (2 years to go) with St george.
Can NAB take over the Home Mortgage from St George and pay a lump sum into IP easily? Does this affect the fixed term interest rate, ie fees for lump sum deposit, switching?Bottomline: Will I or could I get hit for large sums of money from either bank to effect this uncross securitisation. And is it worth all the trouble. Is there something that I have missed?
Cheers
Hi There
Its Maggie Smith, from Ripe Property finance in Perth here, (licenced broker since 2002) could you please tell me how much your investment property got valued for (or your estimated current value), and what the current debt that you took out to buy the investment property is a present.
The main risk of seperating the securities as I see it is that if the current value of the investment property debt as a percentage of its value is over 80% then you will have the cost of mortgage insurance to pay…even if the loan is increased to cover it it is still a cost you eventually need to pay or need to pay interest on.
If you give me the figures, I will look at it for you and let you know. Is the loan full doc?? Lo doc you will be charged mortgage insurance over 60% LVR with HomesideCheers
MaggieAbbruzzi
I have re read your post twice and not sure whether YOU understand what you are trying to achieve.
Depending on the terms and conditions of the Dragons fixed rate loan will determine whether you are able to make a partial discharge and even if you can whether it is viable to do so.
Dont get swept up in the euphoria of uncrossing the securities if there is a cost of doing so by way of early repayment or break cost in relation to the IP.
Without the actual numbers it is difficult to comment on the available options to you.
If you care to provide some actual numbers then I would be happy to comment on the situation.
Richard Taylor | Australia's leading private lender
Sorry..this is a good point, what is the reason for wanting to have the two loans as stand alone facilities?
Seems on the surface of it you would be best to keep things as they are
1)Avoid possible Mortgage Insurance
2)Avoid possible early termination penalties or break cost
3)Why would you want to take money from owner occupier loan and put lump sum into investment debt?
CheersThanks so much to you all,
This has confirmed my doubts about going through with this uncrossing of the properties at this point in time, as the bank valuation of the IP came in lower than needed for it to be stand alone at LVR 80%.
The Mortgage Broker I am dealing with is not putting my interests first in continuing with the uncrossing of properties when they know full well the numbers do not add up.
I will hold off and just sit tight….
Thanks again to you all
Hi Abbruzzi
MB certainly does not seem to be putting your interests first on this one.
Richard Taylor | Australia's leading private lender
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