What do most banks/lenders use as their interest rate when assessing a customers ability to repay a loan against other expenses? It’s been a while since I have noodled in this space, so I’m wanting to get an idea to see how much things have changed as APRA have changed the rules.
(For reference, the last time I enquired it was ~2% above…[Read more]
Thanks Corey. This is different again (I think). So in other words; refinance PPOR and secure new tax deductible loan/split against PPOR? Without actually increasing the amount owing against PPOR because I’m not re-drawing. I know it’s technically not, but kind of like a off set account? Why not do this against existing an investment property…[Read more]
Thanks Terry et al. Makes complete sense… It seems the broker I have consulted is sending me up the wrong path by suggesting accessing PPOR equity via redraw for an IP purchase. (Or I am have misunderstood something… Despite you all having managed to explain it to me far more eloquently).
Thanks Terry et al. Makes complete sense… It seems the broker I have consulted is sending me up the wrong path by suggesting accessing PPOR equity via redraw for an IP purchase. (Or I am have misunderstood something… Despite you all having managed to explain far more eloquently).
Thanks for the
I say not accessible, short of re-financing… I suppose what you have suggested is what I was thinking… but was interested in seeing if there was another way.
…and here is the other way I was looking. Thanks for this suggestion.
So in short, would it be fair to say I should not be touching my accessible (via re-draw)…[Read more]
I’m after some clarity with respect to a potential future IP loan.
At the moment I have 1 PPOR and 2 IPs.
PPOR has accessible equity via re-draw facility – access to $250K. I also have an offset account against the PPOR with $50K.
IP’s have equity, but lets call it non accessible via redraw (re-structured loan to IO a few years ago).…[Read more]
Thank you to everyone for your responses.
TerryW – I'm not quite sure how you came to the conclusion that little or none of the interest on a LOC linked to an 2 IPs would not be tax deductible. The LOC is in no way linked to my PPOR loan. Maybe I have incorrectly explained my situation and it has been misunderstood.
Thanks Jamie. You are correct, the LOC is covering two IPs and I have a standalone loan against the PPOR.
If I untangle, how does one apportion the loan value of the 2 loans?
Is it a matter of saying when I bought IP2 I had 'x' remaining on IP1, therefore that's the loan for IP1 and what's left goes towards the loan for…