4
moneymatters
Is less…more? The pros and cons of having all your properties with one bank. Very often, investors make the mistake of thinking that specific loans are secured against specific properties. This mistake can come to a head once you decide to sell a property or extend your investment portfolio. Traps of having all your properties with one lender: 1) When you sell a house, your bank can have first dibs on the money you can make from that sale. I came across a couple who were going to use the sale of a house for their retirement, however the bank took the whole lot to pay down another loan secured against their property. 2) If you have all of your lending with one institution, then you have access to their lending criteria alone. If the bank says “no” to your urgent or important plan, then to move to another lender could take time and be costly in terms of fees, valuations and lost interest rates. Benefits of having all your properties with one lender: 1) Banks provide better rates to clients with bigger mortgages, so loans over $500,000 usually grab the lender’s attention. Their calculations are based around how much money they will make on the application. 2) One login, one banking relationship and less administration. It is this convenience factor that the bank sells to get your business. Ivan Urlich Mortgage Advisor / Register Financial Advisor A good mortgage advisor will help you with these big-picture decisions, taking into account your existing and long-term plans. BPlan, DipBusStuds
National Certificate in Financial Services Level 5
For further details, feel free to contact Ivan on 09 427 5870 or 0275 775 995 or email ivan@ivanurlich.co.nz Ivan Urlich is a registered financial adviser, his disclosure statement is available free of charge on request.
P 09 427 5870 M 027 577 5995 E ivan@ivanurlich.co.nz A PO Box 310-166 Red beach Auckland 0945 www.mikepero.co.nz t Mortgages
t Insurance
t Personal Loans
t Debt Consolidation
