Unfortunately if you can’t afford it you are correct a bank won’t lend the money to you even if you do have the equity as bank don’t wnat to be selling that equity to get thier money back.

However Richard was asking you who told you that you cannot service, as there are many different lenders who all have different calculators. If you are working out that you can afford $380 on your income then you may be able to borrow a lot more depending on what income you receive from the property you purchase.

depending on what you purchase you would only want to access the deposit and purchase cost from your PPOR anyway the rest should generally be secured against the investment you purchase.

regards
Dustin McMahon 0430 110 304
[email protected]

Where many people get confused with the tax deduct ability of loans is worrying what the loan is secured against. In the eye of the ATO it doesn’t matter what the loan was secured against, it is what the money is used for.

As much as you move the funds around between loans, essentially you are taking cash out and this is not being spent on your PPOR (which is becoming an investment) so I would not think this would be tax deductible. But definitely check your circumstances with an accountant and see what they are happy for you to do.

regards
Dustin McMahon 0430 110 304
Nectar Mortgages
[email protected]