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Grant | 17 May 2013, 08:46 PM Agree 0
I have 2 investment properties, is it better for me to have both mortgages with one financial institution or each mortgage with a different financial institution? can you also tell me why you would choose either option. Thanks in advance.
  • Corey | 02 Jun 2013, 05:50 PM Agree 0
    Having a small number of properties currently may mean that it is more cost effective to put your properties with a single lender, where you can take advantage of professional packages for lower interest rates and other benefits. As time progresses and should you purchase more, it may be beneficial to diversify the number of lenders you are with. I generally try to not expose any clients to anymore than 750k-1m with any particular lender.

    Whether you deal with a bank directly, or a broker, avoid cross collateralisation (having all loans tied against all houses) as this provides benefit to the lender, but generally problems for the client.

  • Eos Property | 03 Jun 2013, 05:56 PM Agree 0
    Hi Grant,

    Corey has it pretty well summed up - while you are considering the location of your loans you may want to speak to your broker to find out which lenders are the more favourable for you and your situation.

    The banks use different 'rules' when determining how much you can borrow - try to align yourself with the more favourable lenders.
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