Forum Replies Created
Hi Dan,
In terms of structuring the loan, it doesn't matter if you take up a P+I or an IO loan, you'll be able to get the FHOG regardless.
In terms of structuring the loan, an IO loan gives you a bit more flexibility then a P+Ioan. An P+I loan would only be ideal if you want to pay off the property, and may not be disciplined enough to put in principle repayments on top of interest on an IO loan.
However, an IO with an offset account gives you alot more flexibility due to the fact that you have access to the amount of principle put in if you intend to convert this property to an IP and buy another PPOR, IP, etc.
The only thing you need to watch out for i guess is the fact that you need to have lived in the property for 6 months before converting it to an IP. Check out the FHOG FAQ http://www.sro.vic.gov.au/SRO/srowebsite.nsf/rebates_fhog_FAQ.htm for more info.
Of course, everything depends on your personal circumstances, but if you are disciplined, I would recommend a IO with offset due to flexibility it gives you (not to mention a greater buffer against interest rate rises).
Cheers,
Dean Lynch
http://www.deanlynch.com.auHi Lou,
Check out the State Revenue Office website in your state, they should have the answers. If no luck try your solicitor/conveyancor as they usually oversee this activity. The documentation has to be prepared for the lender, prior to settlement and the Stamp Duty usually comes out on or after the settlement date. You will need to nominate an account for it to be taken from.
Regards,
Dean Lynch
http://www.deanlynch.com.au.critter66 wrote:what do we do???? we own a house valued at $530K….we now have three kids and need to move closer to work , schools etc….we could get $440 rent per week but the houses in the areas we need to live in are about 700K…we are not savvy with investing, we had our heads down for years to pay the house off ,we have a joint income of $100k. could we get some advice please….You may choose to sell your current owner occupied property and take any equity to your next home. If you decided to buy an investment property after that you may be in a position to borrow the whole purchase price and the fees and charges and then claim the maximum tax benefit available, it is usually a good idea to maximise the debt on investment properties as opposed to PPOR's, however, I would need to have a closer look at your position to provide some solutions based on your current level of debt.
Hi Leda, The equity in your property is the portion of the value that is not financed. If your property is worth $568,500 and your debt is $435,800 your equity is $132,700. Some lenders will lend up to 100% of the value of your property and they would require you to pay Lenders Mortgage Insurance or equivalent. This may give you some more room to play and I would suggest you consult your accountant about the claims that would be available. Your income position looks ok but without qualifying further I would be unable to give you a borrowing estimate.
If you have any other questions, please let me know,
Regards,Dean Lynch
Principle Mortgage Consultant
Australian Mortgage Brokers
E: [email protected]
W: http://www.deanlynch.com.auWhen you are self employed the lenders look for security in your employment or larger deposit. Generally you will need to have 2 years financials, one year to see your income and the second to compare and for serviceability lenders will generally take an average of the two. If you have 20% deposit plus the funds for your fees and charges some lenders will consider 12 months self employment and if you have 40% deposit plus the funds for your fees and charges other lenders will consider short term self employment and ask you to declare your taxable income for serviceability, provided you have an ABN number. You should only declare income you pay tax on, as your declaration maybe subject to audit by the Tax Department.
Cheers,Dean Lynch
Principle Mortgage Consultant
Australian Mortgage Brokers
E: [email protected]
W: http://www.deanlynch.com.auBefore you commit to one lender you should do comparisons and find out what other lenders are offering. Some lenders may be better suited because they have more branches and easier access, or because they have loans with redraw and no fees. Many people use this facility to reduce the interest they pay and even though the rates you have mentioned may be lower, the structure of another loan could ensure the borrower pays much less.
Cheers,
Dean Lynch
Principle Mortgage Consultant
Australian Mortgage Brokers
E: [email protected]
W: http://www.deanlynch.com.auIf you have applied for a variable rate product you will get whatever the rate is at the time of settlement. With fixed rates you should have been offered the option to “rate lock”, for an extra fee, at the time of application and this would have guaranteed that rate for up to 3 months. This would have meant you had the rate you applied for at the time of settlement, regardless of the market movement. Some lenders will guarantee you get the lowest rate, if you rate lock, even when rates go down.
Cheers,
Dean Lynch
Principle Mortgage Consultant
Australian Mortgage Brokers
E: [email protected]
W: http://www.deanlynch.com.au
