The rates on LOCs are generally very high and the term is generally at call.
You can use a term loan just like a LOC.
An alternative might be to use the LOC and then convert it to a term loan once fully used.
Get some tax advice
No because there will be no interest.
If a loan is fully offset there will be no interest to pay, but if you remove the offset the interest will start again and this interest could be deductible if the loan related to the purchase of that property and that property then becomes available for rent.
Terryw replied to the topic How to use company business income to buy property in another company/Trust? in the forum Help Needed! 1 month, 1 week ago
You don’t know what you are talking about!
This is something I usually suggest people avoid doing. Loss on the main residence exemption, land tax in many states – such as NSW where it would cost $8,000 per year for land content valued at $500,000.
It would be better, usually, to own the main residence and rent it out, using the 6 year rule, and rent somewhere yourself where you could…[Read more]
It is probably best to go to a broker who could compare your serviceability across several lenders. I find that CBA is generally more generous than ING for example.
But like Richard said there will be not a huge difference. Generally not enough to make that much of a difference.
Terryw replied to the topic Problem about Switching ip to interest only assessment in the forum Finance 2 months, 1 week ago
Generally a full application again as servicing is more stringent.
Terryw replied to the topic How to use company business income to buy property in another company/Trust? in the forum Help Needed! 2 months, 2 weeks ago
I am not sure what you mean exactly but Company A could lend money to Company B which could buy the property. Company B could buy the property without a loan using Company A’s money – thereby creating a resulting trust. Company A could pay income out to its shareholders who could lend to Company B to buy property.
There are lots of legal and…[Read more]
2. All owners will need to provide a mortgage. If the mortgage secures a loan a new loan application would be needed. You would need to seek advice on ownership % to satisfy the lender. All owners would be jointly and severally liable for the debt and servicing as one unit
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