I haven't really looked into this, but there was one company that was offering up to 85% LVRs. Most are generally 70 to 80%.

Expect the fees to be high and interest rates are about 1 to 2% higher than normal loans.

Thats the problem going with these sorts of companies.

With most, or maybe all, variable rate loans, you will find the lender can vary the loan at their own discretion and it doesn't have to keep to the same margin. Even some of major banks put their rates up by more than the RBA increase. you would have agreed to this when you took out the loan.

These small loan companies get all their funds from the markets – not from deposits, so the cost of funds would have gone up because of the sub-prime crisis.

Hi

You hare repaid loans and would need to withdraw (=borrow) to fund your personal expenses. Therefore the interest on any new withdrawal would not be deductible.

This is why it is good to never pay down any loans, but to put the money in a 100% offset account. By putting hte money in the offset it will still be available for these sorts of things and it won't affect the deductibility of loans when you use the money.

High exist fees mainly. Also as Richard mentioned lack of features and lack of flexibility if you wanted to change products eg. And if you decided you wanted to fix after a year or 2 you may find the fixed rates on your lender are actually higher than a bank.

Also consider the fact that they may not be keen on lending you more money later (because all the loans are mortgage insured), you may have equity which you cannot access without paying huge exit fees.

There may also he higher fees in general such as arrears fees, missed payment fees.

They have to make money elsewhere if they are not making money on the rate.

these fees were constantly changing and varied depending on the product. Look at your loan documents or give them a call and they should be able to tell you over the phone.

1.5% is painful isn't it!

i don't think there is any law on this. it is just up to the individual on how to check tenants. If you wanted to you could rent to someone on no income without checking anything.

no – don't think so as your own half so you have made the loss too.

Don't use offset funds to pay for an investment – this will make the interest on your non-deductible home loan go up and reduce the size of your investment loan = more tax. Better to pay your home loan down first and then set up a new loan against this. All loans should be IO too, generally.

Any business should have an ABN. GST is required if your turnover is more than $75k pa.

if you are conducting a business then you should be able to claim costs incurred including the cost of the building – depreciation. But beware in claiming this as you will lose your CGT exemption for this part of your property – you will probably lose it even if you don't claim the space as being used for your business.  You could also claim part of your mortgage interest and rates, electricity, water etc.

It may be a good idea to look at setting up a company. This is helpful as it clearly separates the business from the personal and helps if your business is sued.

Yes, i dont think you can claim the FHOG unless you move in within the 1st 12 months and live there for 6 months at least.