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Hi Jadlak,
I think you have the picture that if you are using equity from your IPs to paydown your PPOR, you are just simply transferring debt.
It does not provide you with any tax benefits.
This of course assumes that the existing debt on your PPOR was used for the purchase of your PPOR.You do still have the ability by the sounds of it to establish Lines of Credit on either your IPs or your PPOR. Any additional lending at this point in time would need to be serviced by your income alone and rental income.
Your would then of course use these funds for any deposit and purchase costs of a new property.Regards.
Hi Energy4anarchy,
ING do have a proper LOC account.
From what you have said, I beleive your better option would be a LOC.
The ING LOC is referred to as a SMART Home Loan. This product does not have an application fee but does have an annual account keeping fee of $180.
The minimum loan amount for a SMART Home Loan and the Mortgage Simplifier Home Loan is $50,000.
There is no restriction to how you operate a SMART Home Loan as far as repayments and withdrawals are concerned.
Hope this helps.
Regards.Hi Julito,
Firstly, if your lender is going to charge you $1,500 to increase your exisiting loan limit, sounds like it's time to find a new lender. In order to obtain equity from your property your can either:
– Increase the existing lending.
– Refinance and obtain additional funds as part of the refinance process.
– Sell your property.
Some lenders do have early repayment fees on their loans which can be payable for up to 5 years from when the loan was taken out.Whether you sell your existing property to get into IPs is totally up to you.
There are pros and cons either way.
Obtaining differing points of view will help you with your own plans.
Best of luck.Hi PosEnterprises,
As Terry has mentioned, your loans do not need to be cross collateralised. Provided you have sufficient equity in your initial PPOR a LOC could be established to be used for the deposit and purchase costs of your next purchase. The finance for the purchase of your future PPOR would be treated as IP loan where you can use the expected rental to assist with servicing the loan.
From the ownership structure side of things, the best person to advise you of that would be your accountant.Hi Redsun,
Things could be a little tricky if wanting to take advantage of the FHOG yourself. The requirements of the FHOG is that any associated party to the property has not previoulsy owned property. If you are not able to show any income, then you would be needing the assistance of your partner to be able to show sufficient income to service the required loan. Not a problem from the finance side of things, but now creates an issue with regards to the FHOG. Depending upon your own personal situation, a LowDoc lending option could possibly provide you with the finance you require. Of course certain requirements are needed in order to obtain LowDoc finance.
Regards.
