Hey Kassie

Welcome aboard.

I agree that a good accountant is a must – but in this instance they’re not going to be able to advise on how to structure your next purchase, that’s the domain of the finance person (broker or banker).

Gone are the days of 95% refinances :-( They were extremely tough to get approved back in the day and now with recent tightening of IP lending, I’d assume it’s practically impossible.

You’re on good incomes- so if you’re looking to purchase again, it looks like it will have to be from cash savings. With those savings – you could look to inject that money into the principal of the PPOR loan and reborrow as an equity release (a second loan against the PPOR). That will make the debt deductible.

Cheers

Jamie

Yep – the changes are flowing through quickly. Reduced LVRs, changes to servicing models and less discounting on rates for IP loans :-(

Cheers

Jamie

Hiya

Whatever works for you. If you’re comfortable with using phone/email/skype then choose any broker in the country.

Cheers

Jamie

My only concern with the 5 year period is that it’s difficult to plan ahead that far. Life is a little bit more predictable when planning for 2 or 3 years from now….and if you have to break a 5 year fixed loan it could be quite expensive.

Having said that – I’ve noticed the same as Corey in recent times, a sharp increase in clients wanting to take out 5 year fixed rates.

Cheers

Jamie

Just get an IO loan with redraw – place the equity release funds in the redraw and use ONLY for investment purposes. The rate will be a bit cheaper.

Why are you refinancing to NAB? Did you get a better valuation with them?

Cheers

Jamie

It’s a sharp rate – works well for some, not for others.

If you’re simply purchasing the one property and want to pay down the loan as quickly as possible then go with an online cheapie.

If you need additional functionality (ability to access equity, etc) then they may not be a good fit.

Also – I’m not sure how the post relates to the “best mortgage broker out there”?

Cheers

Jamie

Thanks for the kind words Matt :-)

Chris – I’ve replied to your PM.

Cross coll can cause issues – and there’s no reason why your purchase needs to be set up in such a way. Unfortunately – some brokers/bankers just don’t know any better.

Cheers

Jamie

Hi Matt

Generally speaking – I’d recommend IO for an investment if the client a) has an owner occupied loan or other non deductible debt they could pay off first or b) they don’t have any non deductible debt right now – but may do so in the future.

One of the only times where I’d recommend against IO is where the borrower isn’t disciplined with money.

Cheers

Jamie

It’s a 1.28% discount off their standard variable rate :-)

All banks have different standard variable rates though – so it’s not so much the size of the discount that’s important but rather the net rate after the discount is applied.

Cheers

Jamie

Hiya Chris

Kev hit the nail on the head – it’s lender specific. Best bet is to call your bank/broker and ask them the question.

Either way – when it reverts to variable, you’ll be able to access those funds one way or another.

Cheers

Jamie