@fxdaemon rates for commercial are generally more than residential.

ING have some good rates and also dont do annual reviews as per the majors and most other banks. Its a set and forget facility that you dont have to be concerned about a review until the 5 year mark. Available as interest only and P&I.

ING DIRECT

Commercial interest rates effective from 4 August 2016

COMMERCIAL VARIABLE RATE LOANS Interest Rate (p.a.) Comparison Rate (p.a.)
New Commercial Borrowings <$500k 5.09% 5.16%
New Commercial Borrowings $500k to < $750k 4.99% 5.06%
New Commercial Borrowings $750k to < $1 million 4.89% 4.96%
New Commercial Borrowings $1 million < $2 million 4.69% 4.76%
New Commercial Borrowings $2 million+ 4.59% 4.66%

COMMERCIAL FIXED RATE LOANS Interest Rate (p.a.) Comparison Rate (p.a.)
Commercial 1 Year Fixed Rate 4.74% 5.13%
Commercial 2 Year Fixed Rate 4.72% 5.09%
Commercial 3 Year Fixed Rate 4.68% 5.05%
Commercial 4 Year Fixed Rate 4.94% 5.11%
Commercial 5 Year Fixed Rate 5.02% 5.13%

@deancollins – I would look for a 2 or 3 year fixed rate as 5 years is a long time and a lot can happen that could trigger a sale of a property therefore incurring break-costs that could be substantial.

I see the short to medium landscape for interest rates continue to trend downwards, perhaps all the way to a zero cash rate and if correct fixed rates will continue to drop as well.

As always this is just an opinion so make your own mind up :)

• This reply was modified 8 years, 4 months ago by  Colin Rice.

There spruikers and dont give a sh*t about you!

Watch this video to identify if you are dealing with a spruiker;

http://www.thepropertycouch.com.au/how-to-spot-a-property-spruiker/

Anyway, the actual situation when I said no more borrowing I mean I have heaps of equity but lender will not extend/increase existing
LOC limit or let me have an additional new LOC/loan facility. The reason is simply that no servicing power left.

Do you have all your lending with one bank?

Did the brokers you approached check other banks as servicing varies between banks and depending on your scenario and what you want to achieve there may be other options but hard to say without knowing the full picture???

However, I suspec that if I use the existing LOC as 10% deposit for the next purchase which will return a rent income, the lender may be
willing to let me access equity in existing properties say another 10% to 20%, while the new property itself will secure a new investment
loan and also brings in rental income.

Rental income can be used to increase servicing but the corresponding debt has to be considered as well, both with existing bank and new bank for remaining 90%.

Sounds to me like you may have all your eggs (loans) with the same. Whilst ok for a 2 or 3 properties going beyond this will present certain risk you would need to mitigate. Also would need to look at uncrossing securities if they are crossed but may or may not be possible depending on serviceability and which bank/s you are currently with.

I would suggest you get a third opinion via a pre-limanary assessment form a competent broker experienced in investment finance structuring.

• This reply was modified 8 years, 4 months ago by  Colin Rice.

@benny – yes indeed and I would estimate 90%+ of investment loans would be deemed “contaminated and not fit for purpose” if thoroughly investigated but they dont drill that deep. I suspect the cost v reward may not be there to do so (yet) as I have never heard of it during an audit from ATO.

I have instructed banks to place funds in a dedicated offset or to be made available as redraw in the mortgage account but these instructions fail to make it tot the button pusher in India so just gets whacked in the personal offset / transaction account therefore mixing personal with investment lending.

DeanCollins wrote:

why would you need a trust? if you are an Australian citizen you can buy property in your own name.

Depends on the property, is it negatively, neutral or positively geared? Bought in an individual name (trustee) or multiple purchasers. Selling or holding?

• This reply was modified 8 years, 4 months ago by  Colin Rice.

You should be able to claim for those expenses. Ask your accountant to verify first though.

A neighbor did this course and she has done well from the info by applying it.

All the best with the sale :)

Corey Batt wrote:

Perth will be an interesting market to watch when it starts bottoming from its current slump, an area I’ve got an eye on.

Me too haha!

Let me know if you need contacts, BAs, Property Managers, Builders, Conveyancers et.

Get a valuation done via a bank. Costs about $350 or if you know a Mortgage Broker they may arrange one free of charge.