In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Cross collateral
Cross collateral is a finance term that is used when a loan is secured by two or more properties. If you have a home and borrowed additional money for an investment property from the same bank they often cross collateralise or cross secure the properties to lend you additional money.
For many property investors, cross-collateralisation is considered taboo. But there can be some benefits to it:
- - Easy equity
- - Convenience
- - Potentially lower interest rates
The five main types of collateral are consumer goods, equipment, farm products, inventory, and property on paper. All can be used as collateral when applying for loans, provided there is a recognisable value associated with the item.
Learn MoreTo remove cross collateralisation, the best option is to contact the lender and attempt to negotiate your loan structure. You may be able to secure the remaining debt with other collateral.
Learn MoreInsist on stand-alone loans and securities whenever possible. Take out separate loans for each new home, using a line of credit or an offset account to cover the deposit and charges.
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