The higher the debt, the lower the LVR
The higher the debt you get, the lower the LVR, or the lower percentage they will lend you.
At the beginning you might start at 80%. But if you start getting up above $1 million they might be only comfortable with 70%. Even though it’s in multiple properties they want to increase their safety net against you. If something disastrous were to happen they just want to increase their profit margin or their get out margin.
So that’s the problem with dealing with one bank. As you’re cross- securitising and each one’s getting listed in, it’s that much harder every time to try to break the whole thing up. It’s not impossible but it just becomes a more complex situation to try to unravel the whole thing.