Business Services Industry

Trade-offs on single loans.

Australasian Business Intelligence, June, 2007

Byline: Annette Sampson

Jun 05, 2007 (The Age - ABIX via COMTEX) -- Cross-collateralisation is not a strategy that will suit all investors. There are certain risks associated with using several properties as security for a loan, rather than having a separate loan for each property. Critics of the strategy note that it restricts the investor to one lender, while significant penalties may be incurred in the event that the investor decides to refinance the loan. The investor's exposure to loss will also be greatly increased if one of the investments fails. On the other hand, Peach Home Loans CEO Nicholas Gruen notes that using a single lender can be beneficial in terms of cost and convenience.

Publication Date: 6 June 2007

PEACH HOME LOANS...

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