I purchased a half share in an ip with my parents, which I put the deposit down and they financed, I then mortgaged the property at 80% of the full market value and got a line of credit which paid off what I owed my parents and then I bought a unit. (Not the best way to finance it I’m aware, circumstances forced my hand)
Both properties pay for themselves and there is no mortgage against the unit, so what I’m hoping to do is access the “equity” in the unit to use as deposit for another ip.Will the bank view the unit as having finance over it, or will it be seen as me having a mortgage over the house alone, and the unit 100% equity?
Any help on this is much appreciated as well as any ideas on best lenders to take this one to.
Thanks all :)
Hi Bueller
No the lender will view the property as being unencumbered however just make sure you structure the loan correctly this time as your average lender will love to have security over both properties for a small lvr. Cross collateralisation at its best.
Get your broker to use the equity wisely and there is no reason why you can’t set yourself up for multiple acquisitions.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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