Is there any benefit if you pledge the purchased property as security even if you don't need to?
For example:
My current LVR is 50%. I want to buy new property. If I don’t pledge the new property as security, my LVR will be 60%. But if I pledge the new property, the LVR will be 52%.
Is there any reason why I should pledge the property to the bank? I don’t want to pledge it obviously so I can use it in the future if I need to.
The only think I can think off is to negotiate lower interest rate with the bank.
Thoughts?
For example:
My current LVR is 50%. I want to buy new property. If I don’t pledge the new property as security, my LVR will be 60%. But if I pledge the new property, the LVR will be 52%.
Is there any reason why I should pledge the property to the bank? I don’t want to pledge it obviously so I can use it in the future if I need to.
The only think I can think off is to negotiate lower interest rate with the bank.
Thoughts?
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