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Joseph12
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@joseph12
Join Date: 2008
Post Count: 57
May 9, 2008 - 10:11 pm
To free up cash flow as repayments are less and so to borrow more and buy more property, although the repayments at the start of the loan are mostly made up of interest and a minimal amount of principal. Over the long term as the balance reduces you will be paying less of the interest and more of the principal.
However back in Feb 2005 your mortgage magazine edition under the heading 'Why property is a good investment' Steve Knight advised he pays principal and interest repayments.
Probably due to increasing the equity in the property by having the principal reduced.
If their is another reason or if i am incorrect please advise ?
Joseph12
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@joseph12
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May 6, 2008 - 12:37 pm
Increase your existing loan to access the equity to fund the deposit on a new property purchase or refinance your existing loan to access the equity to purchase a new property. Use a deposit bond which will enable you to pay for the deposit at settlement.
Joseph12
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@joseph12
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May 6, 2008 - 9:27 am
PMI re-structured his LMI on loan increases basing the LMI charge on the full loan amount (original and additional loan amount) minus the LMI amount already paid on the original loan amount.
Joseph12
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@joseph12
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May 6, 2008 - 9:11 am
Please refer:
https://www.propertyinvesting.com/forums/getting-technical/finance/4324400
Joseph12
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April 28, 2008 - 4:41 am
Which lender ? La trobe ?
Joseph12
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April 27, 2008 - 11:53 pm
Vacant land in Central Coast. LVR at 80%. Lodoc. Loan amount $750K.
Joseph12
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@joseph12
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April 25, 2008 - 9:31 am
5 paid defaults with a total of around $20K listed and paid around 05/06.
Joseph12
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April 22, 2008 - 12:20 pm
Ok thats for the correction.
Joseph12
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April 22, 2008 - 9:30 am
I think non-resident loans can only be full doc.
Please correct me if i am wrong.
Joseph12
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@joseph12
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April 17, 2008 - 10:03 am
Capitalising interest is:
Ideal for owner occupier borrowers looking to free up cash for other
purposes.
Ideal for investors seeking to turn negative cash flow into positive cash
flow on an investment property.
Their are cash flow loan that can capitalise part of the interest payable is say the first few years of the loan. You would need to enquire with your varies banks, mortgage manager etc.
Joseph12
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@joseph12
Join Date: 2008
Post Count: 57
April 14, 2008 - 9:27 am
Will link is also helpful:
http://law.ato.gov.au/atolaw/view.htm?locid='AID/AID2001307'&PiT=99991231235958
Joseph12
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@joseph12
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Post Count: 57
April 6, 2008 - 10:30 am
You can roll the LMI on top of the original loan amount up to 100% LVR. With the stamp duty i have never seen it rolled on top of the original loan amount.
Joseph12
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@joseph12
Join Date: 2008
Post Count: 57
April 6, 2008 - 10:24 am
If you refinance to a new lender you have to pay LMI on the total loan amount again.
If you increase your existing loan with your current lender you pay the LMI just on the increase amount.
Joseph12
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@joseph12
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March 15, 2008 - 10:44 am
PMI have also removed their Nodoc 70% one day ABN product as well since the start of the year.
Joseph12
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@joseph12
Join Date: 2008
Post Count: 57
March 15, 2008 - 10:41 am
Thanks Scott,
So the lender will use the gross salary amount minus the salary sacrifice novated lease payment amounts as a applicant's income in serviceability?
Joseph12
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@joseph12
Join Date: 2008
Post Count: 57
March 15, 2008 - 10:34 am
Generally any extra repayments on a interest only loan reduces the loan amount and goes into redraw. Extra funds can be withdrawn out of the loan up to original loan amount borrowed.
This is a general answer and its highly recommend you consult your lender or professional financial advisor in regards to your individual circumstances/loan as noted above.