We have a small loan, 150k on our home probably value about 900k and an investment loan for 460k and value of property 600k. We spoke to a broker about refinancing and they suggested combining the two loans into one loan over our home and leaving the investment property with no debt. Is that a good idea?

Hi John,
On the surface that sounds crazy! I can’t imagine what their rationale would be other than to try to attract an owner occupied interest rate. I don’t know your personal circumstances but I would expect you are deducting the interest portion of the loan against your rental income.
For diversification, I would be comfortable with you maintaining exposure to two different lenders and keeping the titles separate so that they can be transacted separately at whatever time you need to.
It is also possible to utilise some equity from your family home to purchase another property at a later date of that fits your strategy.
I wouldn’t do it but by all means get another opinion. If you would like to discuss your options and see what we can do feel free to get in contact on 0435.474.498 or visit our website www.mobilelender.com.au
Cheers

Scott

Hi John,

Everything Scott has mentioned is correct.

It is confusing that it has been suggested to manage the loans in this way.

I would give Scott a call to discuss your specific situation in more detail. Can’t go wrong with more advice from an expert.

Good luck with it all.

Jacqui

Hi John

The short answer is "NO IT IS NOT" Where possible, you should keep investment debt attached to the investment property and vice versa.

I always suggest splitting up your loans in this way and preferably with two different lenders so that each lender cannot touch the other property. The process is not complicated for you as we do all of the hard work. Having said that; we can keep both loans with the same lender if you like, however I would definitely keep both loans separate.

I am not far from Revesby and would be happy to come around for a chat.

You can call me on 0414 727 308 or schedule a meeting with me by clicking on the following link:- http://www.southwestlendingsolutions.com.au/free-consultation/

Regards
Sam Zammit
South West Lending Solutions