Yes GOM and that will almost certainly disappear when the new National Credit Laws come in.

Must admit i have absolutely no idea.If they can support the borrowing in their personal names they can support it in Trust.Maybe the Mortgage Broker was just not comfortable in dealing with a Trust structure. 

Course you can insure against a lot of these potential risks by fixing all or part of your loans although i am still not convinced you haven't missed the boat.Also bear in mind that whilst the Mortgage Rate may go up 1 or even 1.5% the Banks use a affordability rate which is currently between 1.5% and 2.25% higher than the current standard v…[Read more]

Course you can insure against a lot of these potential risks by fixing all or part of your loans although i am still not convinced you haven't missed the boat.Also bear in mind that whilst the Mortgage Rate may go up 1 or even 1.5% the Banks use a affordability rate which is currently between 1.5% and 2.25% higher than the current standard v…[Read more]

Ok sorry bit clearer now.From an income perspective and making a couple of assumptions you certainly appear to qualify for both.Non of the interest will be deductable on your PPOR but i guess what i was getting at was do not mix personal and investment use in a line of credit. If you need to split the accounts and have a series of LOCs.

Hi recruitIf the new property will be an a PPOR then NO definately dont utilise your current LOC unless you have a sub account as the interest wont be deductible. I think i may have got confused on your post as i thought you were looking at buying a an IP initially.Use the offset account on the new loan just make sure you make it Interest only as well.

Yours is a common question and one we get asked a lot especially when clients are looking at releasing equity in their own home. Every lender is different so it is is hard to comment without knowing who the lender is but Yes most lenders want to control where the funds are going and seem to think that if we or another financial planner produces a…[Read more]

Julia Hartwell at Bantics Accountants always has some good information available on her website so have a look at the following link and you should find a suitable download.http://www.bantacs.com.au/booklets.php

Hi PaulI say it ever day Banks and their employees should be held liable like we are as Mortgage Brokers and FInancial Planners.Clearly the strategy and suggested structure your brother in laws lender has suggested will cause him so many problems down the track it is not true and potentially he could kiss goodbye to the interest deduction not…[Read more]

Structured properly your equity position looks ok but can't comment on serviceability without further detailed information.

As i mentioned be happy to email you any report for nothing but they are specific to actual properties so would need a street address to run off one for you.

YIMy advice was irrespective of the LVR NAB always requires PG even if the lvr was less than 50%.Done a few with them and very low lvr's.Happy to be proved wrong but that comes from the top of Qld Credit.

Asset protection is just one reason you would consider buying in Trust.The other main reason is the ability as Trustee to distribute the income to any of the beneficiaries starting with those on the lowest marginal Tax rate.You would never hold a property solely in a Company as there is no concession on the CGT if the property is sold.Sure Land…[Read more]

DSR is just one calculation lenders use and means very little.As i mentioned in an earlier post most loans are credit scored these days so DSR has little bearing on serviceability esepcially where the loan is mortgage insured.Also bear in mind every time interest rate move DSR will change and could be meaningless.

After 5 days definately there should be some action even if they only told him a date when the valuation was going to be undertaken.

Hi TomHate to say your Broker is correct. In fact some lenders will not even issue the letter of offer until such time as you give them a copy of the purchase contract or similar to evidence where the funds are going.Not sure who you are going through but just get your Broker to switch lenders and use someone who doesnt impose such condition or…[Read more]

Ok we have the Annual subscription to Cordells and it doesnt work out too bad.

I fail to see why anyone would tell you it is that bad. It is merely an opportunity cost.You pay it and you get the opportunity to move forward.Dont get me wrong the premiums can vary from lender to lender and from mortgage insurer to insurer so your Mortgage Broker really needs to shop around for you.

Because they dont offer a lodoc PAYG loan.

As long as benq and his partner are not in a spousal realtionship their is nothing immoral about claiming the FHOG.