The journey begins…

Did you pay LMI with your PPOR purchase? Is the valuation a bank ordered valuation or your valuation?

You can have separate loan accounts without the need of a LOC. Some will suggest LOC and some will suggested a standard variable with a linked offset. 

Good idea to have all income income the rent, salary, etc going into offset against the PPOR.

High level plan looks ok. 

Re LMI – whatever you have paid in LMI you can use this as credits so make the banker aware of this. This is really important when it comes to an equity draw.

I prefer a std variable loan with a linked offset (separate account) unless im using macquarie bank.

A bit like arranging security of the chicken coop with the local fox. I can never understand why anyone would want to arrange finance with some incompetent numb nut bank employee who rarely even understands the products they sell let alone advise how it should be employed to structure an investment portfolio.

The biggest impediment and leading cause of investment failure is seeking advice from incompetent finance advisors who are primarily interested only in furthering their own agenda or that of their employer.

For God's sake man do yourself a favor and engage the services of one of the expert brokers here with extensive knowledge and skill in property investment.

Haha!!  Happy New Year to you Uncle Freckle.

Paul, in all seriousness, Freckle is right.  Have one of the highly-regarded brokers from these forums take care of you.  The difference between having them steer your finances and trying to do it directly with the bank is like being a racehorse compared to a shetland pony.

Yeah looks fine.

Just make sure that the banker doesn't cross up both properties (they tend to do this without the borrower being aware).

Another thing to touch on is that both properties are going to be at high LVRs. It looks like you'll be taking the PPOR up to 90% and the IP purchase will be around 90% or higher. Not all banks will be comfortable with this level of exposure – sometimes we use two different lenders to get around this. One for the equity release and another for the IP purchase.

Cheers

Jamie

My pleasure – just post again if you have any dramas with your bank.

Cheers

Jamie

Run for the hills.

They're crossing your loans up.

There is no reason why the LMI shouldn't be credited – unless they changed LMI providers since you took our your loan(which I doubt). Which bank is this?

Just goes to show the incompetence of some bankers.

From your previous posts, YOU have a better understanding of IP structuring compared to the banker you spoke with.

On a positive note – you may have just saved yourself $6,8000 in LMI by posting on this forum

Cheers

Jamie

If you are drawing upon the equity from your current property which you have paid LMI then you have the LMI credits. If she has told you otherwise then she is mistaken or there is some form of miscommunication. 

Just tell her to do what has been advised in this thread. Print out and take it to her.