Hi All,
We have put an offer on in on an investment property, which the vendor has accepted.
Before we started looking for properties we got finance approval for an investment loan and were advised we could borrow up to $330k and the property we’re buying is $260k.
We wanted a 95% lend but the bank is now telling us that they will only do a 80% lend because the mortgage insurers are unhappy with the house as it is a house that has been split into 2 x 1 bedroom units. This has been approved by council.
Our mortgage broker then tried a few other banks all saying pretty much the same and the most she thinks we could get is possibly a 90% lend. Our mortgage broker is suggesting we get the home loan at 80% plus a personal loan at $40k at 12% to cover the rest. I’m wondering does this mean that we won’t be able to claim any tax for the personal loan of $40k?? And if this is the case because the interest rate is double at 12% it’s not exactly worth our while in going through with the deal.
Any help or advice would be greatly appreciated.
ASUHi ASU,
If the problem lies with the mortgage insurers i.e. GE & PMI then perhaps ask your Broker to approach the lenders who self insure, failing that if 90% is the max available then you may need to borrow the remainder via a personal loan etc. 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.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
