All Topics / Finance / Owner occupied or investment mortgage?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of andymitchellandymitchell
    Participant
    @andymitchell
    Join Date: 2005
    Post Count: 67

    Hi all,

    Just visited the mortgage broker (Mortgage Choice) – his recommendation was the ANZ breakfree – 0.7% discount off SVR, offset account. It sounds like a reasonable package to me.

    One thing he did mention – we have to decide if we want a regulated or non-regulated loan, a bit confusing at first but it turns out to be owwner occupied or investment property.

    My query is – if we buy the house as owner occupier, and decide to rent out the unit aftre 12 months – the broker said as it is a owner occupied mortgage, we wouldnt be able to claim the interest as tax deductible..is this right? I can see the point, but surely there are many folks out there who rent their PPOR and use these tax breaks?

    Thanks for the advice,

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Run from this broker. This is basic day one stuff he is getting wrong!!

    Any loan being used for producing income will be deductible regardless of being regulated or not.

    You have no choice if you are moving in – regulated. Then forget it as it will never have an impact on you.

    The ANZ Package is OK but it really depends on your needs as to whether it is the best.

    Mortgage Choice – The McDonalds of the Broker industry!

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Andy,

    You should try on of the brokers on here, such as Simon, who provide us all with free information on a daily basis.

    Regards
    Alistair

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913

    Hi Andy,
    The Break free package has an annual fee of $295.00 if you intend to take advantage of the extra 5 loan products under this package then the annual fee may be warranted,
    However if your future plans don’t include borrowing further funds anytime soon then you may want to ask your Broker about available cheaper alternatives that also offer 0.7% off the SVR.

    BTW, I think the offset is a good idea, especially if you decide to convert the PPR to an IP and intend to preserve the original debt, Cheers.

    Regards
    Steven
    Mortgage Broker

    Mobile Mortgage Market
    Ph: 0402 483 216
    [email protected]
    http://www.mobilemortgagemarket.com.au

    PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Lose this broker quickly… as ‘Simon Say’s’, this is basic stuff. You do not have a choice if a loan is regulated or not. If you are going to live in it, it has to be regulated. If it is an investment property, it is not regulated. This applies as to your intentions on day of settlement. You can change your mind the day after settlement without any impact from the lender.

    Also, regarding the Breakfree, are you aware that you can get the same loan product for a single $400 application fee instead of paying the ongoing fee if you have no intention of using multiple splits or getting multiple loans in the near future? It is called ‘Professional Benefits’.

    TMA


    http://www.email4money.info
    Investor Links
    First Home Buyer Website


    Profile photo of andymitchellandymitchell
    Participant
    @andymitchell
    Join Date: 2005
    Post Count: 67

    Hi Terry,

    Thanks for the reply, I’ll check on the application fee thing.

    Regards,

    Anthony

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
Viewing 7 posts - 1 through 7 (of 7 total)

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