This is exactly why savvy business owners & property investors suggest to spread your borrowings over a number of banks. EXAMPLE: You have two properties. Property A has borrowing of $300,000 and Property B has a borrowing of $600,000. Property A sells for $400,000 and you want to repay the $300,000 loan and keep $100,000. The bank, however, requires you to use the sale proceeds to reduce your borrowing to $500,000.
Posted on: Sun, 14 Sep 2014 22:00:00 +0000