Hi all, I need some advise on restructure of my loans for my own house and rental properties.
Currently I am dealing with two banks A and B.
My own house market value is say $1200000 and loan with bank A on this house is $670000 so LVR 55.8%
My two rental properties value is $435500 each and loan (interest only) with bank B on them is $250000 each so total $500000 so LVR 57.4% each
So total lending is $1170000 and total combine market value of all 3 properties is $2071000 so combined LVR is 56.9%
My mortgage broker is suggesting to restructure the loan and move all loan to Bank C.
Sell my rental properties to another LTC and have them on loan for $435500 each (so 100%) and reduce my own home loan to $299000.
This way I can pay off my own home loan faster and save some money.
My question is this a good option or too risky due to cross security.
What can be other options.
I created a table for the scenarios
Any guidance will be really helpful.
Thanks in advance.
Currently I am dealing with two banks A and B.
My own house market value is say $1200000 and loan with bank A on this house is $670000 so LVR 55.8%
My two rental properties value is $435500 each and loan (interest only) with bank B on them is $250000 each so total $500000 so LVR 57.4% each
So total lending is $1170000 and total combine market value of all 3 properties is $2071000 so combined LVR is 56.9%
My mortgage broker is suggesting to restructure the loan and move all loan to Bank C.
Sell my rental properties to another LTC and have them on loan for $435500 each (so 100%) and reduce my own home loan to $299000.
This way I can pay off my own home loan faster and save some money.
My question is this a good option or too risky due to cross security.
What can be other options.
I created a table for the scenarios
OPTIONS | DESCRIPTION | LOAN | E-VALUE | LVR % |
Two Banks | current own home | 670000 | 1200000 | 55.83333 |
Current structure | current rental 1 | 250000 | 435500 | 57.40528 |
current rental 2 | 250000 | 435500 | 57.40528 | |
current Total rental | 500000 | 871000 | 57.40528 | |
Current total LOAN | 1170000 | 2071000 | 56.49445 | |
One Bank proposed structure |
rental 1 restructure (sell to another LTC) | 435500 | 435500 | 100 |
Cross Security | rental 2 restructure (sell to another LTC) | 435500 | 435500 | 100 |
Paid off in 5 years @ 2.69% | own home restructure (reduced home loan) | 299000 | 1218000 | 24.54844 |
Overall loan amount remains same | 1170000 | 2089000 | 56.00766 | |
Two Banks after restructure | rental 1 restructure | 322700 | 461000 | 70 |
rental 2 restructure | 287000 | 410000 | 70 | |
Paid off in 9 years @ 2.69% | own home restructure (reduced home loan) | 560300 | 1218000 | 46.00164 |
Overall loan amount remains same | 1170000 | 2089000 | 56.00766 |
Any guidance will be really helpful.
Thanks in advance.
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