Hi, I am in the process of buying my first PPOR, and am wondering what would be the best loan structure considering my circumstances (as listed below).
PPOR purchase price= $245,000
Loan value = $232500
Current non-deductible debt (personal loan) = $30,000.
Although this will be my PPOR for at least 1-2 years, it may be used as an IP later down the track – not sure yet. My main focus is to pay off the personal loan.
I have been dealing with NAB and they are suggesting a P&I base variable loan. This does not have the option of an offset account.
From my understanding, I think I would be better off with an Interrest Only loan with linked offset account (although the interest rate will be slightly higher).
Is this correct?In IO loan with an offset is a better option due to increased flexibility. This will also help you repay your personal loan faster (which I assume will have a higher interest rate than your mortgage).
I would suggest speaking to a good broker as they will be able to help you find a suitable loan. If NAB can not offer IO and an offset account then they are probably not the best lender for you to deal with.
Cheers,
LukeI would agree with luke and recommend having a decent broker approach a lender for you,
they may be able to negotiate better conditions for you.there are several on this forum with reputable reputations, who offer help to many people who post here.
I would recommend Richard Taylor, you can PM me for his details and a reference of my experiences with him thus far. he is a long time forum member and will offer some sound advice.
at least speaking to someone might give you some more options to think about
good luck man
Thanks for the replys guys. Have now spoken to Richard
Nice one hope things go well
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