A Christchurch couple that we met felt that they had reached the maximum amount of property that they were able to buy. They had a number of investment properties that were financed with different banks. While they had a small to medium amount of equity with each lender, it was not enough on its own to allow them to borrow against to increase their portfolio. We suggested that they refinance all of the different loans to one lender. This unlocked all the equity that they had spread across the banks and they were able to utilise it to increase their portfolio significantly.

While there is advantage sometimes in having more than one lender, it does pay to review your situation form time to time to ensure that it is still working for you.

Case study 4

Peter is a property investor/property manager who has a large number of rental properties and chose to have all his loans on a variable interest rate. He did this as he wanted to be able to reduce debt when it suited him and also to repay loans if he sold a property.

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