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Two properties (and two separate loans) with one bank? Good or bad?

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hereforadvice | 04 Feb 2019, 10:22 AM Agree 0
Good morning folks,

I am looking for advice (and potentially a new broker).

I am looking to purchase my third property (PPR) and have been advised I could refinance one of my properties to obtain equity and use as deposit to purchase property #3.

However the bank that has given me the valuation that I want/need is the same bank as property #1 so i would essentially have two loans and two properties with one bank - is this considered cross collateralisation?

Current situation:
Property #1 with Bank A
Property #2 with Bank B (Bank B did not give a good valuation)

Refinance property #2 to Bank A (with a separate loan) to get equity out.

What are the risks involved?

Thank you in advance.
  • Happy with that | 04 Feb 2019, 01:53 PM Agree 0
    We have 6 properties and 7 loans across three banks, 4 of the loans with NAB and no issue, actually made negotiating a reduced interest rate easy, match the best rate we had at another bank or we take all 4 loans there. Equity is important but cask flow is king
  • | 04 Feb 2019, 04:20 PM Agree 0
    Thanks a lot for your response.
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