RHG currently has extremely high interest rates and their exit fees are exceptionally high if you wish to re-finance within the first 4 years.What you need to look at is the cost differential between the Interest Rate savings if you re-finance and their exit fees.

Hi Andrew,That is my pleasure, I am glad that the information that I provided you was of some assistance.As you suggested what you would have to do with your first property is move into it for 6 months to take advantage of FHOG and get it to a stage where you will receive a rental income of $350 per week. Then start saving for your second…[Read more]

Hi Andrew,Its always a good time to start thinking about investing in another property, provided that you have the income to support it.The key things that you need to remember when investing in a new property and with your example your looking to renovate the property and sell it for a profit.You will first of all need to have a deposit to…[Read more]

Hi Badger 101,You need to chose your Mortgage Broker wisely, some brokers will push the products that will pay them a higher commission, however a Mortgage Broker should be offering you a choice of products and the banks that they deal with. When they make a recommendation to you, it should be based on your what you need or want in a…[Read more]

Jazz,The banks would also want to see your Business Financials, there are certain add backs that they may be able to look at such as Interest Paid, Depreciation etc that are included in your P&L. When you run an SME it's not always black and white as to the income streams for serviceability of your loan. As you would be aware they would also take…[Read more]

Hi Jadlak,That could be true, that is why I would always recommend talking with your accountant prior to making any decisions on tax deducatable debt. Everyone has a different scenario for their individual needs.

Hi Jadlak,If you have debt levels against your IP of $295,000.00 with the Market Values of the IP of $535,000.00 @ 80% the banks would lend $428,000.00 aginst these properties. This would give you an additional $133,000.00 to borrow against your IP's which from my calculations should be able to pay off your PPOR (This is taking into account your…[Read more]

There are still some very competitive banks out there that will lend on a Commercial Property. As Richard advised most lenders will only lend a maximum of 70% against the commercial property, and you will need to come up with the remaining 30% deposit yourself plus costs.Some clients will look at taking out a line of credit / investment property…[Read more]

Hi Rudiga,

Westpac & the CBA will also do 95% of the Market Value of the property, this will often depend upon whether or not you are an existing client of theirs that has a lending product for 6 months (I.e. Credit Card, Car Loan, Home Loan etc) Though you do need genuine savings.

There maybe some limits as to what you can borrow though.

Hope…[Read more]