There is often a lot of discussion on here about the dangers and benefits of x-coll.
I'd like to share our perspective.
We currently have 5 properties with ANZ - 1 PPOR and 4 IP. We are expecting to sell one, so I rang ANZ to find out the x-coll status, as I knew there was some crossing going on.
Without going into the values/loans of each, here's what I found.
Property - security
PPOR - PPOR/IP1
IP1 - PPOR, IP1, IP2, IP3, IP4
IP2 - PPOR, IP1, IP2, IP3, IP4
IP3 - PPOR, IP1, IP2, IP3, IP4
IP4 - IP4, IP1, IP2
We are looking to sell IP2. Can you imagine the shenanigans that will need to go on at settlement? And how much money we end up with?!? Then within the next 12-24 months, also looking at selling and upgrading the PPOR,
Long story short, I have made an appt with the bank on Tuesday afternoon, to look at getting (where possible) each loan standalone with a single property as security. What I expect after that is the following:
Property - security
PPOR - PPOR
IP1 - IP1
IP2 - IP2
IP3 - IP3/IP1*
IP4 - IP4
Wish me luck - I'll update this after my mtg with the bank on Tuesday!
* I don't have the time or patience to go through a full application process to split these loans out, so happy to leave them crossed at the moment.
I'd like to share our perspective.
We currently have 5 properties with ANZ - 1 PPOR and 4 IP. We are expecting to sell one, so I rang ANZ to find out the x-coll status, as I knew there was some crossing going on.
Without going into the values/loans of each, here's what I found.
Property - security
PPOR - PPOR/IP1
IP1 - PPOR, IP1, IP2, IP3, IP4
IP2 - PPOR, IP1, IP2, IP3, IP4
IP3 - PPOR, IP1, IP2, IP3, IP4
IP4 - IP4, IP1, IP2
We are looking to sell IP2. Can you imagine the shenanigans that will need to go on at settlement? And how much money we end up with?!? Then within the next 12-24 months, also looking at selling and upgrading the PPOR,
Long story short, I have made an appt with the bank on Tuesday afternoon, to look at getting (where possible) each loan standalone with a single property as security. What I expect after that is the following:
Property - security
PPOR - PPOR
IP1 - IP1
IP2 - IP2
IP3 - IP3/IP1*
IP4 - IP4
Wish me luck - I'll update this after my mtg with the bank on Tuesday!
* I don't have the time or patience to go through a full application process to split these loans out, so happy to leave them crossed at the moment.