Wednesday, June 9, 2010

Cross securitisation of properties

OK todays blurb. Have just written a loan for a client who is buying his first investment property. He was going to access the equity in his home mortgage to use as a deposit for his investment property. That's fine, if there's enough equity there but unless you set the loan structure up correctly the properties will be cross-securitised. This will casue problems down the track, when the client wants to borrow more money from the bank....Post a question at Mortgage Benefts PLUS to find out about cross-securitisation and better loan structures for investing.

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