Now, you don’t need to withdraw cash from your owner-occupied home to purchase a property. You just need to cross-securitising your new investment property with your owner-occupied property.
Cross-securitising will combine the Total value of both properties and convert them into a total security amount by decreasing LVR when consolidating the debt of both properties. If the worth of your property is $950,000 and you own $350,000. And now, you want to purchase another apartment investment worth $700,000. But, after the paperwork, everything else that goes with it and stamp charges, you need to pay an extra $25,000 which makes the total amount to $725,000.
Your refinanced total debt is now $975,000, with the security amount total of $1,675,000 calculated from the sum values of the 2 properties. This case will result in a low-risk LVR of around 60% everything from the same lender.
Also, you can divide the loan into two formats, one with $350,000 of original owner-occupied debt and the other with $725,000 investment loan, for the benefit of maximum tax. This way, only one lender is laden to both securities. And you don’t need to refinance to draw out cash; you can quickly get one loan.
A perfect way to get a loan is that you already have all the details of the property which you want to buy. You can also determine the maximum borrowing amount for new investment by applying for pre-approval.