Okay. So what are the advantages of using two banks?
More options?
Owning a home and investment property makes using two banks quite important. But there are even some advantages for 1st home buyers. For buyers with less than a 20% deposit some banks will give priority to existing clients. For a couple having salary split between two banks means more options.
Property investors will find that properties split between banks can means more options if further lending is required. Using only bank can mean that if a future request is turned down, you may have to consider moving everything to another bank. This can prove costly if break fees or cash back returns are incurred.
Selling an investment property
There has been a shift in how banks deal with funds from a sale when dealing with multiple properties. These days if you sell a home but still intend to keep some lending in place, a relook at your financial situation is triggered. This is a shift from the old days, when they would only check the value of the remaining security.
When a property is standing alone with only one bank, you control the funds after clearing the debt secured by that property. This can mean a lot more options for people, during times when cash might be urgently needed. It is generally during a time of financial crises when a bank would likely want to reduce their exposure to a struggling client.
