If you have no intention of purchasing an owner occ in the future – and if cashflow enables it then I’d consider going down the P&I path.
With the rate difference between P&I and IO widening these days – you’ll probably find that the monthly repayments aren’t going to be drastically different (depending on how long your previous IO term ran…[Read more]
Best to keep the loans uncrossed.
It’s easy to do. Assuming you have one PPOR and are looking to purchase one IP. The structure is pretty much:
Loan 1: Current mortgage
Loan 2: Equity release to cover 20% deposit and stamp duty on IP
Loan 3: Investment loan to cover remaining 80% against IP (deposit comes from loan 2…[Read more]
What sort of investment income is it James?
If it’s dividends – and if you can demonstrate some consistency in terms of the duration you’ve held the shares, etc then you can use that income for servicing.
However – not having earnings from s/e or PAYG sources will likely cause headaches unless your investment income is high.
Are you looking to do an equity release for $200k at 87% ?
If so – that’s not an easy deal to get approved!
Banks aren’t overly keen on large cashouts above 80% LVR these days. If you’re going above 80% you’ll most likely need to have evidence of what that $200k is being used for.
Contract employment is quite common – and certainly doesn’t preclude you from borrowing.
Factors that come into play are the size of your deposit, the length of time you’ve been in the industry you currently work in and the duration of your contract.
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There’s nothing stopping them – but if they do get caught they may be penalised. It’s not common at the moment – but no doubt lenders will become more observant with tracking this into the future.
As a very general rule – valuations for refinancing tend to be on the conservative side. It’s not uncommon for a valuers estimate to be less than the client believes their home to be worth.
On the flipside – it’s not uncommon for purchase valuations to come back at the purchase price. It’s quite rare for them to come in less.
Jamie Moore replied to the topic Flipping and Access for renovations during settlement in the forum Help Needed! 4 years, 10 months ago
Yep – I’ve done it before.
It was part of our offer. We required access to the property post exchange/pre settlement to carry out some renovations.
Our solicitor put something in writing to the owners solicitor – the owner signed off on it and everyone was happy.
Hit up your current lender first and see if they can provide any further discount.
There’s some second/third tier lenders that are reasonably competitive but have terrible borrowing capacity calculators for investors – such as Suncorp, ING etc
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