Forum Replies Created

Viewing 1 post (of 1 total)
  • Profile photo of BB2012BB2012
    Participant
    @bb2012
    Join Date: 2012
    Post Count: 2
    May 24, 2012 - 12:34 pm
    gibbo1 wrote:
    Hi BB, Welcome to the forum. Drawing equity of $75k will take the LVR up to 91%, so you will then have to pay LMI for that as well. The ATO will look at what the purpose of the loan is for – being purchase of PPOR it would make the $75k non tax deductible. If you do go ahead with this ensure that they are seperate loans so not to mix deductible and non deductible loans together. Also contact a decent broker to ensure the PPOR and investment property dont get cross collaterised. Regards Gibbo

    Hi there,
    Thanks for the reponse. Its clear now in regard to the tax deductible part. I have paid LMI when I took the loan for my Investment property since the LVR was 90% and I think I dont need to pay much if I top it up to 90% of the present value.

    I am not clear about the issue if the bank cross collaterise the new loan with the investment loan. Can you please explain a bit more?. Thanks for the help.

    BB2012

Viewing 1 post (of 1 total)