Brokers have access to the same policies.

I would say it’s less complicated. You deal with one lender rather than two.

Both ways you finance 100% plus costs as two loans. 80% against the new property and 20% plus costs against the exising property.

The only difference is the new bank contacts ING and advises them they are placing a second…[Read more]

Something a few people don’t consider.

You can go to a major bank (get an experienced lender) and borrow as follows;

80% interest only against the IP
20% plus costs with the major – against your existing property.

You can get a 2nd mortgage put on the property you currently have which means the property has two mortgages registerred with the…[Read more]

hi Andrew,

I know I’m being a little bit of a pratt however it’s very black and white and applies to all major banks.

Terryw wrote:
You should probably talk to your accountant, but i would think option 2 to be the easiest – subject to you disclosing the purpose to the bank. make a diary note that you have told the banker this in case something…[Read more]

The loan is still for business purposes. Regardless of strucuture.

Therefore if a retail product either you, your banker or your broker is will need to withhold information from the bank to get home loan pricing. It is a pretty minor area of fraud and very common; but still deceptive.

Some non-banks are happy to lend on home loan products for…[Read more]

itsandrew wrote:
My wife is looking to take out a LOC against our PPOR for running her business.  Our PPOR is in joint names. Because of this the bank wants both our signatures on the LOC for her business.  However, the sole purpose of the debt will be to run my wifes business:1) Does it matter for tax purposes that the security for the b…[Read more]

Not sure if I agree Terry.

If two people are on title two people need to agree to borrow against that property in the capacity of either applicant or guarantor.

For example the line of credit could be in one of the following structures;

joint names
her name only with his guarantee
a company name ( if one exisits) with his and her…[Read more]

The structure has a significant flaw if sold to your for mortgage reduction. Hence ASIC have a section on their website calling it a scam and the banks approx 5 years ago withdrew their marketing promoting off-set or line of credit for mortgage reduction. Anyone who remembers the graphs showing a home loan over 30 years without offset and then 8…[Read more]

After all the warnings if you are still dumb enough to go with a non bank, regional bank overseas bank to skimp on rate or because you think price is the number 1 issue; more fool you…

It’s not so much about risk – it about not having the funds if everyone redraws. At least not at th same cost of funds.

We have 4 strong lenders in Australia.…[Read more]

I think you are all looking far too much into it: http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/002/013/003this link covers almost everything you need to know about deductions regarding rental properties.Let’s not get carried away thinking residential property investment is sophisticated from a tax point of view. The only tax return s…[Read more]

With property; as an example. If you buy In joint names; husband and wife for 200,000 and husband borrows 200,000 could you not also look at it as husband paid 200k for a 50% share. The 200k was still borrowed for investment purposes. There are plenty of examples where husband and wife get financial benefits from each others investments.

I…[Read more]

As I said in my first post it’s an area where there are mixed views.

If you borrow for investment purposes I think your are pretty safe. If I borrowed in my name to invest in shares or property for my wife – I would claim the interest in my name. You can all get on the phone with the ATO (call ther hotline) and they will confirm you can not claim…[Read more]

As I said in my first post it’s an area where there are mixed views.

If you borrow for investment purposes I think your are pretty safe. If I borrowed in my name to invest in shares or property for my wife – I would claim the interest in my name. You can all get on the phone with the ATO (call ther hotline) and they will confirm you can not claim…[Read more]

As I said in my first post it’s an area where there are mixed views.

If you borrow for investment purposes I think your are pretty safe. If I borrowed in my name to invest in shares or property for my wife – I would claim the interest in my name. You can all get on the phone with the ATO (call ther hotline) and they will confirm you can not claim…[Read more]

Hi Hans, You must be the only person in the industry looking for people with NIL experience to work part time as mortgage brokers? The wider industry has been making massive efforts to professionalise the industry and do away with the ’truck driver today, mortgage broker tomorrow’ image the industry has earned over the last decade.  What’s with be…[Read more]

They would have to be guarantor. The loan contract would be to the borrower supported with a guarantee; the mortgage doc would have to be signed by all title holders to be accepted by the titles office.

I’d just work out the max you can spend / or are willing to bid. Get the bank to value with that as your estimate and when the Val comes back get confirmation from the bank it acceptable: and let the Val be your limit.

As Richard said, good brokers weed out the chaff. If you buy, then get the val, then fin out the bank won’t accept it, the find…[Read more]

Also – just called ATO on 13 26 21.

They have said interest can only be claimed if your name is on the loan. In this case husband and wife have purchased th property however husband is being charge interest expense. She cannot claim interest as she has not been charged interest. She does however get 50% of income and capital gains if…[Read more]

I just read the link;

“Interest on money borrowed by only one of the co-owners which is exclusively used to acquire that person’s interest in the rental property does not need to be divided between all of the co-owners.”

.

And they decline nearly every 95%er… Maybe no post code restrictions however the traditional NAB decline based on 'where not comfortable with the deal" can be used to decide anything.

Devo 76 is part correct but it will depend on your accountant. It's an area where there are mixed views. Logic would say that the person(s) on title get the depreciation and the person(s) on the loan get the interest deduction. Most accountants that I come across work on this basis. Therefore assuming you’re are both 50% owners of the property; y…[Read more]