I guess Lora it all depends on what you are after.If you are Mr & Mrs Joe Average and want to buy a PPOR and have a 50% lvr then i guess you can walk into most Banks and they will probably assist you all things given.If however you want a bit more such as a choice of lenders, a correctly structured loan, have been knocked back by 1 Bank, an…[Read more]

Not sure who Michael is but i am sure he will answer you soon.CheersYours in Finance

Not quiet right An offset account cannot help you pay of the loan sooner when it is an interest only loan unless of course it is a offset account with The Dragon.A true 100% offset account will merely reduce your monthly interest being charged and NOT reduce the principal.A good independant mortgage broker should be able to assist you in the…[Read more]

Or you could merely post the questions on the forum and get imput from everyone without feeling like you are being sold something.I believe Terry has already more than adequately answered this question in the other thread.CheersYours in Finance

Tong i think you have my emailed list 10 reasons and since doing so 3 more have come to mind.Bit suprised your mortgage broker didnt point out the pitfalls but then saying that maybe i am not. CheersYours in Finance

Hi PentiNormally if you want to raise such a question would have been better to post it in the Finance Forum but anyway here goes.Jamie has made some suggestions on how to set up the structure however without having actual numbers it is difficult to provide you with further information.Course whilst you have the equity you may not have the…[Read more]

We will assume for the purposes of the exercise that you have the $25K sitting in an offset account already.Set up an equity loan (cheaper than a LOC) against IP 1 and use this to gear against for the deposit and acqusition costs and then set up a separate standalone IP loan on IP 3. Only concern i would have is what you bought for $110K. Might…[Read more]

No worries Bayer he is a good guys to deal with.CheersYours in Finance

As Jamie has mentioned we write with slightly a biased view however in saying that most mortgage brokers dont charge fees for their services so certainly wouldnt be getting any unsuprising bill from me.Now if you are after someone to source the property for you probably look to engage a Buyers Agent but remember choice one who declares his fees to…[Read more]

Just out of curiousity which Bank funds the NRAS that you deal with.Probably read the recent report about NRAS properties and how 90% of them where overpriced.We have found most have been undervalued by between 10-15% which is equivalent to the commission the developers are paying the marketeers.Good investment for who may ask…[Read more]

No thats is not case at all.If you are paying 7% on your mortgage and you are in the 30% marginal Tax rate (you will be slightly over this on a couple of K) the funds in the offset account are effectively earning 10% as the offset is Tax free. CheersYours in Finance

Hi BrendanFirstly welcome to the forum and I hope you enjoy your time with us.Couple of things you can do about the cash flow issue and that is look at a fixed rate of interest and also if you are buying in your personal name look to undertake a QS report on the property so you can lodge a PAYG Tax variation stright up.Now on how you structure the…[Read more]

Also remember whilst LMI it is deductible over 5 years or the term of the loan whichever is the lesser there are also lenders that dont charge LMI upto 85%, others that charge a fee instead and other that pay the LMI themselves on a 90% deal upto a given amount.All of course subject to nice clean credit but could save you a few $$$$.CheersYours in Finance

Hi Tong Drop me an email and I will email you a list of the reasons why you would C/c.CheersYours in Finance

Sorry Bank i have to totally disagreeAnz DO offer the product as standard through Mortgage Origination under Portfolio. Dont disagree with the fees but the product is offered with upto 12 splits.NAB Do offer the product through NAB Broker without the need to go to a Business Banker.Westpac i will grant you there but SGB we are directly accredited…[Read more]

Sorry Banker have to disagree there CBA are one of the only lenders that lend to either family (disc) trusts or unit trusts / with the option of company as trustee – at their discounted wealth package rates.NAB do under Choice you get 0.7% discount upwards and can actually unofficially have a 100% fully transactional offset account in a Company…[Read more]

With the LOC, is that at a higher interest rate? All depends on what the original variable rate is in the first place. I think new CBA customers will find that they are paying more than other borrowers on their variable rate loans so with CBA YES definately. With other lenders NO.Would it cost to redraw up to the 80% LVR of the re-evaluation of…[Read more]

I am not being funny if your MB has not suggested this he is not acting in your best interest or has no idea how to structure an investment loan.maybe he hasnt ever purchased an IP either.Yes you have the concept of the suggested structure.All you would do as the Ip increases in value is redraw upto 80% of the increased valuation and then pay down…[Read more]

Sorry mate i couldnt disagree with you more.My personal portfolio is worth over $18.5M with a a total loan of less than $2.4M.I would never offer my PPOR (which is actually in the wifes name anyway) as security for another property.Why wouldnt you take an 80% lend on the IP as mentioned earlier with a 100% offset A/c and if necessary an LOC on…[Read more]

What are you getting for your annual $350 and why would you Not want an every day transactional offset account on part of the loan.You can't set up a decent portolio by crossing all of your loans and the easiest way to avoid this is use different lenders.One lender to fund the deposits and acqusition costs on your PPOR (which you would normally li…[Read more]