Storeybuilder wrote:

Let’s say I have property A with $50,000 usable equity and property B with $50,000 usable equity.Can I buy property C using the combined $100,000 equity from property A and B?

Yep – that’s fine.

Just set up the $50k loans as separate loan splits for ease of accounting.

Cheers

Jamie

They exist but there aren’t many lenders doing them – and your application has to be very strong to overcome credit scoring and LMI.

The costs of LMI at 95% is brutal too!

For high LVR loans – generally best to stick with 88% + LMI in my opinion. Your scope of lender options improves – and the LMI costs drops a lot.

Cheers

Jamie

I’ve got a spreadsheet that might help (I haven’t updated for a while) but hopefully you can get some use out of it – http://www.passgo.com.au/investment-property-analysis-tool

Cheers

Jamie

Certus legal are pretty good.

Cheers

Jamie

Hi up Richard above – he’ll do a good job.

Cheers

Jamie

Careful with locking in for 5 years though Dean.

If your situation changes and you need to refi/sell up you could be slugged with a high break cost.

Personally – I wouldn’t fix for longer than 3 years. You can plan ahead for 2 or 3 years – but any longer than that becomes difficult IMO.

Cheers

Jamie

Have you paid LMI on your current property before?

If so – then it’s likely to be more cost effective leveraging up to 88% against the existing property as the LMI costs shouldn’t be too high (just an adjustment to the premium you’ve already paid).

If you haven’t paid LMI previously – look at the difference in LMI costs when borrowing more than 80% against your current property compared to borrowing more than 80% against the purchase property.

I’d set all up as interest only – have an offset linked to the owner occ loan at the time.

Cheers

Jamie

Keep the offset. I’d pay the $10 per month to avoid taxation implications down the track.

I don’t know what rate you have – but $10 per month for a loan with an offset isn’t too bad considering most other lenders charge a package fee that’s $350 to $400 p.a

Cheers

Jamie

Contact your solicitor and get them onto the case – that’s a pretty big oversight.

Cheers

Jamie

huilo wrote:

Would a broker be aloud to give his client a copy of a certain policy if the client asked for it? i assume not but was curious.

I can’t speak for all brokers – but part of our role is explaining to clients why certain niche policies may fit their particular needs. So yes – of course that information is divulged. However – handing over a 100 page policy document that encompasses ALL of a banks internal policies would be out of line (I assume that’s the info you’re after).

Cheers

Jamie