I have a client with Bankwest. I think with one of his loans, we pushed them and the took the bank direct deposits as proof – less than 80% LVR = no LMI issues.

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If you have an PPOR loan and investment properties, it maybe possible for you to borrow to pay the investment loan interest and to pay off your homeloan quicker. See a good accountant, or you could get into trouble with the ATO.

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Interest rates on LOCs are the same or slightly higher than standard home loans – 0.1% higher sometimes. To avoid the higher rates, it is sometimes possible to use a normal home loan like a LOC if it has free redraw – but they don’t like you capitalising the interest.

It is possible to capitalise the interest with a LOC, and to withdraw extra funds, but you will need equity to do this. If you are starting off on your first property, then you will probably have a high LVR. It may be best to borrow 100% if possible, and put all your spare money in a 100% offset account. Then use this money to live on and for your renos.

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Hi Dom

I would be reluctant to sell, especially if they are paying dividends. Just be patient and watch the values and rents rise.

As for serviceability. Be careful with your loan applications now. If you are careful, then you will be able to qualify for No Doc loans when you hit the limit. Then you can keep on borrowing if possible.

Also look at what Christopher suggested. Capitalising interest is possible if done correctly. This may speed up the repayment of your home loan.

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What about getting the place rented to a ‘third party’ who signs a lease for the whole property and then onleases the place room by room.

Many lenders will go on the lease if it is properly drawn up and executed.

Alternatively what about showing the rental income coming into your account each month. A history of this should help.

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Hi Chris

It is not such a bad thing, cross coll. But best to untangle now if you are going to buy more. Its like a ball of string, the more proeprties you cross the harder it gets to untangle.

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for a good accountant try http://www.guardianpartners.com.au

I don’t know any good solicitors!

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Ih ave seen conflicting advice regarding this. I think having the assets in a trust will help greatly. But the family court does have the power to unravel trusts and companies.

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I have a trust where I am beneficiary and trustee, so do many of my clients. It is possible.

It may not be possible where the trustee is the only beneficary, but where they are one of many, it should be ok. Do some more research.

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Cabo Wabo

Did he say which state the property was in?

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