Tax deductibility depends on the purpose in which the funds were used, not the security used.

So if you increase you home loan to buy shares/property the extra interest incurred would be deductible.

The problem lies in determing the extra interest if you have one big loan.
eg. If you have $50,000 owing on the home loan and then borrow another…[Read more]

Hi

An asset loan is where the lender (mainly) looks at the asset and not the person. Often no questions are asked about about employment or assets etc. There are no serviceability issues at all. These are sometimes also referred to as No Docs.

Many people prefer these to Low Docs because with a low doc an income needs to be listed and…[Read more]

Yes I read it last year and agree. It is one of the best books I have read recently. There are a few more books by McGrath which I have on my must read list.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

You should be able to get standard loans with most banks. There is only one I know of that discriminates on age.

I once heard a banker just they just did a 30 year loan to an 88 year old woman.

However, to get a loan, you must have deposit and an income to support the repayments – inless you go for an asset loan or no doc loan.

Terryw
Discover…[Read more]

If you have don’t have a high income, then there will be a limit on how much you can borrow. Having 2 years financials will help – if they are good.

You have the option of low docs, but these are generally 80% LVR and rates can be higher. One thing you have to watch out for with low docs is that most are mortgage insured, and the two mortgage…[Read more]

No. You will still need to give personal guarrantees, so the lender will rely on your income. If you can’t qualify now, nothing will change by forming a company.

You probably shouldn’t use a company to hold proeprty either. better talk to an accountant before setting any thing up.

Terryw
Discover Home Loans
Mortgage Broker
North…[Read more]

Hi

As far as I know the two main mortgage insurers do not treat wrap refinances as being refinances, so they will only lend on the contract price, not value. Therefore you will probably need at least 20% equity to refinance. Your figures seem to indicate about 50% LVR so you should be right, even for a low doc with a major bank like ANZ.

Most…[Read more]

Tasman

Yes. you right!. Of course, I meant to write Investment loan. You pay the interest on the investment loan with your LOC.

Sorry to confuse everyone. I will amend the original post.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Yes, why not. But becareful tax wise. if you try to claim the interest on the $40K it won’t be initially deductible until you use it for the investment.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Can’t really be done like that. it may be possible somehow, but would be costly to setup.

look at http://www.chrisbatten.com.au for some info on smsf and proeprty.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I suspect you will be lucky to find a low doc commercial lender at around 70%, let alone a no doc at 80%. Let us know if you do.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

I knew it!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Be very careful. Depending on what state you are in, if you nominate a trust after signing a contract, you may be charged stamp duty twice. A trust can be setup in 5 min, waiting to see the accountant is the long part. Try and get in there early.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

There is one bank that I know of that discriminates on age of clients. They generally do not like loans exceeding a persons expected working life – otherwise how will they pay it back!??

I don’t know if they can do this legally, but they must be able to.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Which bank?

Maybe you have to change banks?

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Sue

I am not sure. You had best run this by your accountant.

If you are putting the rent into an account, why not use a 100% offset account, at least you will save a few days interest per month.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Banks don’t like conditions like that. They will ask to see a stat dec from the giftor saying it is a non refundable gift of $x

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Adam, that sounds right with your units. Trusts can’t distribute losses. But they will not always be returning a loss. After a few years the rents will go up etc, and you will be making a taxable profit. Then it would be good if it was a trust. There are also other advantages such as asset protection etc.

With the Hybrid trusts it is a bit…[Read more]

Possibly, if your intention is investment.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Terry@discoverhl.com.au

Say you have a $500,000 loan on your property (worth $1mil) and a $500,000 loan on your IP.

You have your poprerty loan PI, and IO on the investment loan. You also have a LOC set up against your home loan. When interest is due on the investment loan, you can pay this from your LOC. When rates etc are due for the IP, pay these also from your…[Read more]