All Topics / Help Needed! / Which Bank? – IO Loans

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  • Profile photo of TommygunTommygun
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    @tommygun
    Join Date: 2009
    Post Count: 11
    June 16, 2009 - 10:52 am

    Hi all,

    Anyone got any ideas as to which banks will give you an IO loan with a 100% mortgage offset account for an owner occupier property?

    This is a new PPOR while renting the existing one out.

    Thanks in advance,

    Tommy

    Profile photo of maree_bradrossmaree_bradross
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    @maree_bradross
    Join Date: 2007
    Post Count: 401
    June 16, 2009 - 11:16 am

    If your saying you need a 100% loan for the property then no-one – 95% are few and far between too.

    Profile photo of TommygunTommygun
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    @tommygun
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    June 16, 2009 - 11:45 am

    Thanks Maree,
    Will require 80% of the loan…

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 16, 2009 - 12:20 pm

    Hi Maree

    I think what Tommy is asking is who will give him an Interest only loan with 100% offset account on a PPOR rather than a 100% lvr.

    Still a few lenders that offer such a product Tommy but would need more information to give a valid assessment.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
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    @terryw
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    June 17, 2009 - 1:45 am

    ANZ, Westpac………….

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of FinSpecFinSpec
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    @finspec
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    June 17, 2009 - 2:32 am

    80%  loan with a 100% offset account can be found with pretty much every major – you'll find it hard to get a true offset account with a mortgage manager.

    Main issues I believe you should look at would be the specific structure, rate, fees and processing time (if timing is an issue).  Different banks will have better pricing than others depending on what is happening in their treasury departments at the time.

    Profile photo of TommygunTommygun
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    @tommygun
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    Post Count: 11
    June 17, 2009 - 12:11 pm

    What about borrowing 100% of the purchase price, but using equity on the original PPOR as collateral? So as not to pay LMI…. Will any of the major banks come at that?

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    June 17, 2009 - 12:14 pm

    Hi Tommy

    Yes they will but you wouldnt want to structure it that way.

    You would split the loan and secure say 20% + costs against the PPOR and have a totally seperate standaone loan on the IP. 

    Your Broker should be able to structure the loan correctly for you.

    Richard Taylor | Australia's leading private lender

    Profile photo of TommygunTommygun
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    @tommygun
    Join Date: 2009
    Post Count: 11
    June 17, 2009 - 12:44 pm

    Thanks Richard.

    Appreciate your comments. Came down to melbourne today from Brisbane to check out a property and I'm booked in with a bank tomorrow. But as I won't be buying this property because it was nothing like it was described on the internet  ( along with a bunch of Dodgy photographs!) I will probably have time to find a broker.

    Profile photo of mrkueh80mrkueh80
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    @mrkueh80
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    Post Count: 31
    June 17, 2009 - 2:17 pm

    use your own house to borrow out the 20% and borrow 80% of your new home..that makes 100%.

    ANZ have pretty good rate and package fee and the rates is 5.11%

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