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Jamie has answered the question clearly and that should assist you however i would have to add i am not aware of too many cards that allow 55 days interest free on cash withdrawals.
If you have changed it to a Line of Credit then hopefully your lender explained the tax consequences.
Not ideal in my opinion and more expensive anyway.
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Yours in Finance
Richard Taylor | Australia's leading private lender
At that level probably paying around 6.35% post lender increase this week.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Marcus
Jamie is being far to polite.
Do not use a Broker recommended by the Selling Agent.
Honestly do you think it is in that Brokers interest to be acting on your behalf or his mate the local agent.
One thing is for sure the property wont be downvalued as he will make sure that is the case or he wont get any further business from that referrer.I would ring and cancel the appointment and then second call would be to ring Jamie.
Get an expert on your side and someone who is acting for you and not the agent selling the property.
Sure the Broker might be a nice chap, even read the books and dont the course but wont have Jamies experience.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it is fine as long as it is structured correctly.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes it can with some lenders.
Most of the majors it will have no bearing but a lot of others Yes it can.
We use a mix of variable / fixed rates for clients with a number of properties if serviceability is an issue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Exactly – some lenders will take the actual repayment rather than a sensitised repayment but the fact that you fixed the rate would not get a mortgage insurer to approve the deal if serviceability wasnt an issue.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Has no bearing whatsoever on the deal being assessed.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Nick
Welcome to the forum and i hope you enjoy your time with us.
It will all depend on who your current lender is.
With some it is a simple project switch form whilst with others it is a full on application and being on probation could cause a problem.
All being equal a credit search if required will not be a problem going forward.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Must admit i a not aware of any traditional lender that will finance normal ratios on a 28 sq M unit.
Just had 1 back that was only 32 Sq M internally at 17 lenders declined it with 1 saying they would do 70% only.
This was CBD Melbourne.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mat i agree with Jamie
Interest only with 100% offset will at least give you an option should your circumstances change in the future.
There are some excellent 100% offset products out there at the moment without all of the normal Bank fees and charges.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Wade
If it is a 5 x 2 and you are constructing them that is different.
Most lenders will treat that as a Comm deal.
You wont have the option of going for 2 loans as you have single Title.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Internally anything over 35 Sq M you should be fine.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Yes you could comply with all of the Grant conditions, put the utilities in your name and for some reason you were not able to sleep there there at night well so be it.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Luke
There is a big difference in Stamp Duty in NSW when buying the property as an investment property and buying it as your first home for owner occupation.
You also have to consider if you purchase the property as your first home you will also qualify for the First Home Owners Grant now rather than waiting until you purchase your own home down the track.
I would be borrowing 80% of the purchase price popping the Grant and the balance of your savings in the offset account.
To comply with the terms of the Grant all you have to do is make the property your prime residence for 6 continuos months commencing within 12 months of Settlement and you can then look to rent the property out again.
On a separate note i have to say i wish i had your confidence that the Banks will contiinue to pass on rate cuts should the RBA keep lowering but i think we might have seen the last cut for a while.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Chris
Just action is a step by step process:
1) Pay the $33K into the PPOR home loan and then get your Broker to organise for the advnce repayments / capital reduction to be cancelled.
2) Then get your Broker or Bank to make application for a $33K + $22K as a separate sub loan. Loan to be interest only.
3) Once the $55K has been drawn down use the funds to cover your IP deposit and acquition costs and at the same time get your Broker to make application to another lender for a stanadlone investment loan taking solely the security of the new IP.Job done, nice and clean and 100% Tax deductible.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Hi HC
Yes feel free to shoot me an email.
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Yours in Finance
Richard Taylor | Australia's leading private lender
The simple answer is Yes and No.
In most cases it is not a matter of the lowest rate but actually getting the deal thru at that lvr whatever your local bank say.
Where LMI is involved they could ask for additional information at any stage, change their mind, request a blood sample, anything is possible.
What one mortgage insurer will do another may not and this can be the same even where the same insurer is used.
It is ok getting a deal thru but if the lender doesnt allow increase is tough on credit scoring etc etc the offer of a rate of interest can mean nothing.
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Yours in Finance
Richard Taylor | Australia's leading private lender
Should be down to around Standard variable rate circa 7.5%.
I am doing a block of 9 units on the 1 Title here in Brisbane and the indicative rate on a resi deal is 7.6%.
Client has a few properties and good serviceability hence the rate.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hate to say if it is a newly formed SMSF a lot of lenders will walk away.
We never use CBA for our SMSF loans as their costs and requirements are way out of the market.
Most lenders will require a Financial Planner to sign off that the Investment strategy is understood however you are looking at
$150- $200. Where we are not acting for the client to arrange the loan we charge $150 for the Certificate.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wont get more than 75-80% lvr and will depend on a couple of things.
Yes it may be done at resi rates if everything else stacks up.
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Yours in Finance
Richard Taylor | Australia's leading private lender
