Hi all,
Just visited the mortgage broker (Mortgage Choice) – his recommendation was the ANZ breakfree – 0.7% discount off SVR, offset account. It sounds like a reasonable package to me.
One thing he did mention – we have to decide if we want a regulated or non-regulated loan, a bit confusing at first but it turns out to be owwner occupied or investment property.
My query is – if we buy the house as owner occupier, and decide to rent out the unit aftre 12 months – the broker said as it is a owner occupied mortgage, we wouldnt be able to claim the interest as tax deductible..is this right? I can see the point, but surely there are many folks out there who rent their PPOR and use these tax breaks?
Thanks for the advice,
Run from this broker. This is basic day one stuff he is getting wrong!!
Any loan being used for producing income will be deductible regardless of being regulated or not.
You have no choice if you are moving in – regulated. Then forget it as it will never have an impact on you.
The ANZ Package is OK but it really depends on your needs as to whether it is the best.
Mortgage Choice – The McDonalds of the Broker industry!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
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.
Andy,
You should try on of the brokers on here, such as Simon, who provide us all with free information on a daily basis.
Regards
AlistairHi Andy,
The Break free package has an annual fee of $295.00 if you intend to take advantage of the extra 5 loan products under this package then the annual fee may be warranted,
However if your future plans don’t include borrowing further funds anytime soon then you may want to ask your Broker about available cheaper alternatives that also offer 0.7% off the SVR.BTW, I think the offset is a good idea, especially if you decide to convert the PPR to an IP and intend to preserve the original debt, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Lose this broker quickly… as ‘Simon Say’s’, this is basic stuff. You do not have a choice if a loan is regulated or not. If you are going to live in it, it has to be regulated. If it is an investment property, it is not regulated. This applies as to your intentions on day of settlement. You can change your mind the day after settlement without any impact from the lender.
Also, regarding the Breakfree, are you aware that you can get the same loan product for a single $400 application fee instead of paying the ongoing fee if you have no intention of using multiple splits or getting multiple loans in the near future? It is called ‘Professional Benefits’.
TMA
http://www.email4money.info
Investor Links
First Home Buyer WebsiteHi Terry,
Thanks for the reply, I’ll check on the application fee thing.
Regards,
Anthony
))You must be logged in to reply to this topic. If you don't have an account, you can register here.
