Giving personal loans from line of credit

Viewing 4 posts - 1 through 4 (of 4 total)

jensshed
Member
@jensshed
Join Date: 2005
Post Count: 12
February 20, 2007 - 1:55 am
This is another idea of mine, what would be the feasability of giving personal loans from my line of credit at say 8% more than my current mortgage interest rate – these would be paid directly back into my mortgage therefore paying my mortgage much more rapidly.
Naturally contracts would have to be drawn up.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 20, 2007 - 2:18 am
Jen
I do it all the time both from my LOC and also my own funds either in cash or through my SMSF.
As long as you comply with all the credit documentation you will not have a problem.
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Richard Taylor
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 20, 2007 - 6:03 am
I’ve done it too in the past. Ended up with lots of problems chasing my money. Just be careful.
Terryw
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Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 20, 2007 - 3:33 pm
I only do it secured so it is easier to manage either as a Bridging loan or secured P/L.
Unsecured is too high risk as Terry mentioned.
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Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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