Hi All
I have a line of credit for $500K on my PPR. Can I purchase IP 's on a 80% LVR still…using some of the LOC.? i.e. Take out a completely new loan and use some of the LOC to purchase the property..i.e. Mortgage Insurance, Solicitor cost, and any other purchasing expenses? Hope that makes sense? Love to hear anyones comments on this…Cheers
Yes, you can use the $500k equity release to cover the deposit/costs on your IPs while setting up stand alone loans to cover the remaining portion for each IP.
I doubt you'd need to pay any LMI just yet on your purchases given your massive equity release. It should cover quite a few deposits before you move into LMI territory.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks your your reply…Yipee! Time to look for some great deals!
No worries.
Set out a plan though – you've got a lot of money to play with. A well thought out, executed strategy is important to reach your end goal.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
How certain are you about the value of your property?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Shanin….pretty certain…why is that?
Sandy
If you're looking at 80% LVR's then you wont have to worry about LMI
One of the most common curve balls is that valuations come back lower than the investor's expectation so it may be worthwhile (when you are ready to start buying) to do an upfront valuation. Most lenders offer this and it is free.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
TheFinanceShop wrote:One of the most common curve balls is that valuations come back lower than the investor's expectation so it may be worthwhile (when you are ready to start buying) to do an upfront valuation. Most lenders offer this and it is free.Regards
Shahin
But by the sounds of it he/she has already accessed the equity so a valuation on her PPOR now would be irrelevant – there would have been some form of val (desktop or full) carried out when the line of credit was set up.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
That is correct Jamie…the LOC has already been set up. Thanks for the advice just the same Shahin. The val was conducted by HTW so I'm gathering it was ok??? Now if only we could get this rain to slow down or go further down south further where others could really benefit from it…i.e the fire affected areas …then we would have another problem solved.
I personally wouldn't use a LOC credit if its a deposit as its more expensive than standard loans. It has higher flexibility though.
If you have enough balance in the LOC to use as a deposit then yes you don't need the valuation as the facility is set up but again I wouldn't use a LOC to fund the deposit.
Why is the LOC there in the first place? Is it used for other means?
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
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