Is it sensible to go to a bank and ask them to finance the purchase of a second house, for rental, when all you have is a fully owned house (of somewhat less value) – i.e. no cash deposit funds at this time?
That was my question in the beginning. The answer is: Yes.
And from there we can wander off in all directions covering all kinds of aspects, facets of it all.
I just wrote about two pages, enjoying myself immensely, almost a tirade, almost a crusade… and just now deleted it.
Bank or Broker is a different question, needs a different thread.
Value of a 0.5% reduction in Interest is a different question, needs a different thread.
Otherwise we’ll just go on forever and never get anywhere.
Is it sensible to go to a bank and ask them to finance the purchase of a second house, for rental, when all you have is a fully owned house (of somewhat less value) – i.e. no cash deposit funds at this time?
Yes.
If you got a say 0.5 PA% discount through an online provider (my online provider charges 4.49%) over a bank like say National (NAB charges me 5% pa on PPR) over 30 years you would be saving approx $60,000 on a $400,000 property home loan. Online providers can have acceptable structures too, just do the due diligence.
Online cheapies have their place – but rarely do they work well for investors. Like all things in life – you get what you pay for.
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]
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