Can someone really, really, smart tell me:
If you take out an 80/20 loan on a IP and your getting your 20% from your equity mate in your PPOR, and the 80% from your IP does this mean you are financing 100%How many times can i use the word ‘YOUR’, it’s your guess
Yes I think this is what you are doing. The entire loan will be deductible. You can also borrow all costs too and not incur LMI on the new loan.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks smartie:
So really my 80/20% loan is 100 %
is that something like ‘Less is more’ and ’40 is the new 30’…..Hi Wallflower
I think what you are talking about is cross-collaterising the two properties where you don’t actually draw out the equity from your PPOR.
The bank would look at the total LVR over the 2 properties and if it’s 80% or under they will loan you the full amount of the new IP.
There will always be some debate whether this is the best strategy, or to keep all loans separate. Personally gone are the days for me when the bank has got me by the b..s and I have to go begging cap in hand to ask for to borrow more cash and refinance the entire cross-collateralised mess.
It’s a matter for choice really and your individual circumstance. Don’t expect any favours with the valuations when you want to break the securities apart though.(You can tell I’m having an angry day with the banks!)
Good Luck!
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]
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