Second bond

[xrapidx]

Has anyone taken out a second bond on one property before?

If so - what was the process, and was it with the same bank?

 

[Kosmik]

Has anyone taken out a second bond on one property before?

If so - what was the process, and was it with the same bank?

I think you mean an extension or additional. Depends on the bank, I did for a previous property, was a second bond over the balance of the property. Same as applying for first, similar costs too although only the bond portion. Best to speak to you local bond manager.

Ours was with same bank, not sure how it works with different ones.

 

[xrapidx]

Most likey a different bank.

 

[Kosmik]

Most likey a different bank.

The only issue is security ie: which bank is able to secure funds if you default or pass. Most won't want to share, might be easier to have the entire bond transferred and extended one time.

 

[LPCPT]

Stick with the same bank. Transferring a bond can be costly.

 

[xrapidx]

Yeh - that won't be worth the effort and cost, and I probably won't get the same interest rate again.

Need to raise R300,000 for renovations, and bank is insisting on a building loan because I want to remove one internal dividing wall (not structural)

 

[air]

Need to raise R300,000 for renovations, and bank is insisting on a building loan because I want to remove one internal dividing wall (not structural)

any chance of funding that yourself and negating building loan bit?

 

[xrapidx]

any chance of funding that yourself and negating building loan bit?

I can fund about R50k of it - I like to keep R100k cash reserve for emergencies. (so that'd being that down to 50k)