Certainly you dont need to cross collateralise the securities to be able to borrow 100% + of the purchase price of any new property and it is a strategy we would rarily recommend.Given the equity you have in your current property and as long as you feel you can service any new borrowing then using your own equity opens up a number of doors to e…[Read more]

If you intend to submit numerous offers i would draw up a standard fax format asking the agent to prepare a formal purchase contract with a list of special conditions which are to be included.The standard fax should include details on:The purchaser (individually / Trust / Company structure) details.1) Whether you wish to waive the Cooling off…[Read more]

It all depends if you intend to sell the current property ? 

Wow denny 6.21% is a shocking rate of interest even with the loan amount you currently have.

Will Lender A not require some info on where the money is being spent? Yes they will and some lenders will say NO.Thankfully there is still some competition left in the finance market and some lenders still have no issues with "Cash Out".Your understanding is correct from there on in.

Non as long as the lender is happy to keep approving them.Not as easy as it sounds.

Sorry Max this is clearly not trueYou have to make a will to gift your property to your relative.You can do it merely by way of a simple Transfer form although as Terry has correctly mentioned the gifting may affect them when it comes to Pension entitlements.

micheledVery unlikely you will find a lender that will offer you a big enough unsecured loan to act as deposit.Those lenders that do not ask for evidence of where the deposit has come from and do not require evidence of genuine savings normally limit their LVR to 90% of the purchase price (there is 1 exception). On a $300K purchase price this m…[Read more]

Denny i think you are getting slightly confused on the situation.You would look to take out a line of credit sitting in behind your current loan (and Yes Westpac offer LOC's) and use this to fund the 20% deposit plus costs.Then on a standalone basis would secure an interest only on the new investment property.As both the interest on the LOC and…[Read more]

Hi VicYes. You end up with the Diploma or Advanced Diploma in Financial Planning.Job prospects i guess are ok if you join someone like AMP / CBA but you will earn more going out on your own. Models can either be commission based or the way the industry is heading being a fee for service.

Neither of which carry friendly pricing though must be said.Aslo credit policy is pretty tough and a lot of negatives.Certainly could do better.

An LOC or a Line of Credit is a secured loan facility whereby the lender approves a credit limit at a given rate over a given period of time although only charges interest once funds are drawn down on a daily basis.Assume you have a limit of $50,000 and use $20,000 on the 15th of the month then you are charged interest for 16 days.You may pay the…[Read more]

Hi again KiwiOk in answer:1) No a standard lender will not take your shares into consideration when lending for an new IP. You will need a separate marginal loan lender and this loan will taken out against the security of the shares solely. You can then use the funds as deposit for your IP.2) Lender wont mind as you pay the mortgage insurance…[Read more]

Thanks Duckster sorry i totally misread the post ( I think)I am going overseas myself in a fortnight and must have got over excited on the thought of holidays.

Hi LukeYes there is. Subject to all of the usual criteria (income, credit, etc) you would be able to obtain finance for a property living and working overseas.Think you might it a big stretch to claim it is your PPOR unless you intend to come back and occupy it shortly.

Hi HopefulFirstly sorry to hear of the situation you find yourself in.Unfortunately their is no lender that will offer a > 80% lodoc refinance at a sensible interest rate and set up costs these days.Even at 80% or below lodoc refinancing is becoming a product of the past.Lenders are very much rating their risk and some of the interest rates i have…[Read more]

Hi there Firstly welcome to the forum and I hope you enjoy your time with us.I am assuming when you refer to the shares as Capital you mean either:1) You will liquidate them and want to use them as deposit and wondered whether the lender will accept this as proven savings. Answer – YES.2) You want to offer them as security and gear against the. An…[Read more]

Hi MattOk One Direct at least i was on the right horse.If your existing Equity manager account was for personal purposes then why not switch it to a Interest only / P & I term loan as unless used for specific debt recyling purposes I am not a great lover of personal lines of credit.Yes the interest on both the separate investment line of credit…[Read more]

Hi MattWelcome to the forum and I hope you enjoy your time with us.I assume from your post comments your loan is with Anz.In essence all you would do at this stage is either take out a separate Equity manager account to 80% of the current valuation and use this to fund the 20% deposit and the acqusition costs on your new investment property…[Read more]

Hi AjaxThere are 4 Nodoc lenders out there and non of them have attractive rates so cant see that happening some time soon.Even less next year when the new Consumer Credit Reforms kick in placing more of an emphasis on brokers etc to ensure their clients can afford the loan and holding them responsible if they cant.