I am thinking about re-finance my current PPOR and IPs with the aim to extract the equity and to lower my current home loan rate (4.53%)
This is the suggestion from the MB
<<snippet>>
As per our discussion, the structure is as follows XXXXXX
Facility 1 - PPOR - Wife's name on title
Borrower <<Me + Wife>>
CBA Valex Security Valuation $865k
Loan Amount $581k
Facility 2 - IP 1
Borrower << Family Trust with company trustee>>
CBA Valex Security Valuation $620k
Loan Amount $250k
Rental income - A$ 610/week
Facility 3 - IP 2
Borrower << Family Trust with personal trustee>>
CBA Valex Security Valuation $737k
Loan Amount $361k
Rental income - A$ 610/week
Facility 4 - for future IPs
Borrower TBA - Personal name or in one of the above trusts for
future investment purposes
The structure after refinance: Security Address Cross-Collateralised security pool - IP1, IP2 & PPOR.
Security Valuation remaining equity - up to 80% LVR of security pool after above debts have been deducted Loan Amount Circa $581k
Total Borrowing $ 1,777k @ 80% LVR - @ 4.35% CBA Wealth Package
I told the MB NOT to cross-collaterised the loans. However the comment
was "I gave some consideration to the idea of not X-collateralising the 3 properties and came the conclusion that 1 facility for future investment was better than 3 separate facilities.
Is that routinely done and best way of refinance??
This is the suggestion from the MB
<<snippet>>
As per our discussion, the structure is as follows XXXXXX
Facility 1 - PPOR - Wife's name on title
Borrower <<Me + Wife>>
CBA Valex Security Valuation $865k
Loan Amount $581k
Facility 2 - IP 1
Borrower << Family Trust with company trustee>>
CBA Valex Security Valuation $620k
Loan Amount $250k
Rental income - A$ 610/week
Facility 3 - IP 2
Borrower << Family Trust with personal trustee>>
CBA Valex Security Valuation $737k
Loan Amount $361k
Rental income - A$ 610/week
Facility 4 - for future IPs
Borrower TBA - Personal name or in one of the above trusts for
future investment purposes
The structure after refinance: Security Address Cross-Collateralised security pool - IP1, IP2 & PPOR.
Security Valuation remaining equity - up to 80% LVR of security pool after above debts have been deducted Loan Amount Circa $581k
Total Borrowing $ 1,777k @ 80% LVR - @ 4.35% CBA Wealth Package
I told the MB NOT to cross-collaterised the loans. However the comment
was "I gave some consideration to the idea of not X-collateralising the 3 properties and came the conclusion that 1 facility for future investment was better than 3 separate facilities.
Is that routinely done and best way of refinance??