dad is considering on moving at the end of the year however the current house has a LVR of about 10%, and the new purchase would be funded by the equity on this house (and maybe a little loan)
Anyway would a bridging option be the best for him, or would a a normal loan on the new property IO with a 100% offset account be a better option? This way he would just run a 80% LVR and when the current house settles, the money is just transfered to the offset account leaving a small balance (obversily the interest would need to be the variable rate) and then he can pay more than interest each month to start paying it down
Because he is 55 how long of loan can he get? can he get a loan length for only 10 years?
thanks for your advice guys…cheers
Dave
A bridging loan with capitalised interest maybe the way to go for him as he could make no repayments and then repay the loan out of the net sales proceeds.
He could roll the interest upto 12 month.
In saying all this a 25 year standard loan would certainly be available to him.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
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thanks richard, atleast i know he can borrow over 25 yrs…
i like the offset account coz they way the equity/cash is there to use for shares/IP deposit, however im glad theres the 2 options
cheers
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