I think he means he’s never paid off principle.

Hi Scot

If you want to go down this path – and you have a PPOR, it would be in your best interest to pay down the non-deductible PPOR debt before you move onto paying off the IP debts.

Cheers

Jamie

Hi Luci

It’s a depreciation schedule carried out by a quantity surveyor. Basically, a depreciation schedule provides a list of items associated with your IP that can be depreciated.

Cheers

Jamie

Hi Darryl

Welcome to the forum.

To avoid cross collaterisation you would:
1. Top up your current home loan to access some cash for a deposit and purchasing costs for your next property; and
2. Take out a separate loan for the remainder

Some lenders allow cashout up to 90% of the properties value. Looking at your numbers, it seems that you’ve got around $25k that you could possibly access.

Hope that helps

Jamie

Hi Derek

If you have enough equity elsewhere so as you can avoid paying LMI, then why wouldn’t you? Think about it, if you have one PPOR with enough equity to cover the 20% plus purchasing costs on an IP – why would you only access a portion of this equity, say 10%, and pay some LMI and leave all that equity sitting dormant in your PPOR?

I’m talking about equity here – I can see the merits in not saving a large 20% cash deposit to avoid paying LMI.

Cheers

Jamie

None will do 100%.

There’s quite a few going 95% lends for owner occupied purchases and a few are doing them for investment purchases. ING recently increased their LVR on investment and owner occupied purchases to 95% + LMI. The great thing is, you don’t have to be an existing customer, which is often a requirement with other lenders (particularly the Big 4).

Cheers

Jamie

Hi KMMK

If you want to increase cashflow then IO is the way to the go. As you’ve mentioned, you can place your savings into the offset and reduce your interest repayments. There’s generally a fee payable for making the switch, however you might be able to get this capitalised onto the loan.

Best of luck with the wedding

Jamie

Derek’s right. Different banks have different criteria when assessing serviceability – while your mum might not fit the criteria with the bank she visited, she may fit it with another.

Perhaps have a quick chat with a broker. Do keep in mind however, that if your mum suspects that servicing the debt will be difficult then it would be best to avoid this commitment.

OTP – Off the plan
SANF – Sleep at night factor
ACL – Australian Credit Licence
REA – Real Estate Agent