Educational Media, Downloads & Helpful Links
Why go to a mortgage broker over a bank? How much deposit do we really need? What paperwork is needed and why? Why do interest rates rise?
Q & A: Tim Allwood, Principal of Compass Property Investing with Ray Dib, Principal of Switch Finance.
Ray Dib Switch Finance talks to Hot Tomato at the Gold Coast Caravan and Camping Show
Q&A with the director of National Institute of Property Research Josh Green.
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Cross Collaterisation or Stand Alone?
Cross-collateralisation is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. Another term is “co-secured” meaning the same thing as in multiple security (i.e. residential property for example) simultaneously providing security for one or more loans.
This article attempts to explain the difference between structuring your property portfolio as “Cross-collateralised” or “Stand-alone” with regards to borrowing and shedding some light on best practises and why.