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  • Profile photo of cremonecremone
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    @cremone
    Join Date: 2008
    Post Count: 2
    March 17, 2008 - 11:59 pm
    Qlds007 wrote:
    Hi Cremorne

    Certainly do not use your own funds as a deposit on an investment property whilst you have any personal debt.

    Couple of ways would be to either deposit the $150K into an offset account and save interest on your PPOR or alternatively pay down your principal and then take out a new loan to use as deposit on the IP.

    Try and avoid cross collateralising the 2 securities.

    With regards to the answer as to how much you can borrow without a lot more additional information it is difficult to make such an assessment.

    Thanks for the reply.

    We will planning to put the fund in an offset account while deciding what to do with it.

    Can you elaborate more on "alternatively pay down your principal and then take out a new loan to use as deposit on the IP." Are you referring to a LOC type of loan ? If so, won't taking out an LOC against the PPOR as deposit for an IP create a cross collaterisation scenario ?

    Thank you

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