Hello Everyone!
First let me say this forum has so far answered a lot of my questions more than the bank, my broker and my accountant! Kudos to everybody contributing to this forum.I am hoping to get advice re my situation:
Broker A has organised a cross coll for my PPOR (273K owing, 380K value) and my IP ( 190K value) with Bank A lending me 80% LVR to avoid LMI. Still have to come up with around 20K costs and difference. I will get around 180K for 19K IP so essentially 95% loan.
Having read about cross coll and with advice I got from this forum recently ( thanks Richard!) I went to Broker B who organised 90% I/Ostand alone with Bank B for the IP ( bank will give me around 170K) and helped me organise LOC for investment only purpose with my PPOR bank giving me around 30K to cover the 10% remaining and costs but I will have to pay LMI (around 2K). For an 80% loan, I will have to pay another 10 % from own funds.
My questions:
1. I am inclined to go with the 90% standalone even with LMI, is this still the better option?
2. I have paid the deposit of 10% from my PPOR offset already before LOC was approved. If I draw the same amount from LOC and put it back to my offset account, will ATO still see it as having paid the 10% deposit for the IP? I have asked my accountant but he did not give me a definite answer and he told me, “for as long as you can prove that you used it to pay the 10%” , BUT HOW?IP will be positively geared, Husband and I combined income of 140K, 35K in my offset. Hope this info helps.
Advice needed, settlement is in 4 weeks! Thanks in advance!
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