Looking at what banks offer what rate is one thing but I cannot stress enough how damaging it is to your credit file and application if you the bank sees how many different lenders you have applied to at the same time. Whatever you do – do not apply to a lender unless you are sure of going ahead with that lender and of course you have confidence…[Read more]

If you are wanting to use it as a bargaining chip then Macquarie does 5.44% as per advertised rates and NAB will go to 5.44% on LVR's under 80% and over $500k loan amounts but you need to request pricing (i.e. its not advertised). On the other side of the park some lenders are offering cash backs to refinance your loan to them.

Regards

Shahin

Whats the problem exactly? Is it age or something else?

Regards

Shahin

Ahh yes tax advice with only 2 lines of information – I would suggest speaking to an Accountant or better still Terry who has responded about the appropriate structure. There are a lot of things as per the above post to consider.

Regards

Shahin

What is the total loan amount and the LVR?

Regards

Shahin

Are they simply offering you an SMSF Loan or does the loan happen to come with a specific property that they are selling?

If its the latter then I would be concerned.

Regards

Shahin

Depends on the strategy – I have a mix of cashflow properties and properties that I have built reasonable equity (but they were heavily negatively geared properties).

Ultimately, people hit either the servicing or deposit/equity wall. I usually deal with people who hit the later. So building good equity is very important. 

Regards

Shahin

1. Definitely to use the $200k upfront in one go. Set yourself a long term goal and determine how much to use. Particularly with those loan amount – the LMI is not going to be overly high. So if the plan is to go to 95% LVR go hard and go early.

2. There are excellent buys in the $250k range in a lot of areas that are close to neutrally geared.…[Read more]

Perfect. The no LMI 85% LVR with Citi is a certainly a good option if again you meet the crtieria.

Regards

Shahin

IO is most certainly the way to go. It should have been set up this way to begin with.

The thing is that even if you sell – there would be approx 3 month delay before you actually get the funds.

The difference would need to come from savings.

Regards

Shahin

If I were you I would be ordering upfront valuations on each of the properties ASAP to get an idea of what they are worth and thus equity plus its free.

Regards

Shahin

Ok that explains it. This is not the best structure but back to the issue at hand I wouldn't entertain replacing good debt with bad debt. 

Do you have credit cards? If so perhaps you can do a balance transfer? Have you considered fixing the loan at a lower rate (although this has other drawbacks).

Regards

Shahin

Depends – you need to look at regional or create dual income if you are looking at metro. 

Regards

Shahin

Its been a long day and im probably missing something here but how did you get a $175k mortgage against a $168k purchase?

Regards

Shahin

That's sound like a good plan assuming you meet the criteria for the 85% LMI waiver. Citibank have conservative servicing but they are an ok lender – certainly in this scenario as that LMI portion will save you quite a bit. 

No issues with Homeside either – they are a good lender. Why are you refinancing to Homeside? Are you chasing interest…[Read more]

This doesnt sound right – is the $175k the mortgage loan or is it part mortgage and part personal loan?

Regards

Shahin

Once the property becomes an IP – the loan amount (whatever it is at the time) will be tax deductible. The $68k should already be tax deductible since the purpose of the loan was to fund the IP purchases.

You need about $105k to avoid LMI on the new PPOR and this may be suitable since the LMI is not tax deductible so I would take one or more of…[Read more]

How much did you originally purchase the house for? Did it drop in value?

Regards

Shahin

How did you go with your valuation?

Regards

Shahin

Ok so your equity at a 95% lend (which is hard to achieve but let's park that for the time being) is approx $19k.

What is the purchase amount of the new IP?

Regards

Shahin