The problem you face is a NODOC loan needs a 35% deposit plus purchase costs. Rate is only 6.85% which is pretty cool.

They would also need to fulfill the FIRB requirements.

Unless they put it in your name as you suggested but this may not help you in future lending as it will count as another loan in your name.

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

A LODOC loan is not necessarily a non conforming loan.

A LODOC loan is where the proof of income provisions are relaxed. Originally designed for self employed folks who needed an inordinately large amount of paperwork to prove their income.

These loans relax this proof and allow people to sign a declaration of affordibil;ity or a declaration of income.

I hope this helps.

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Which lender is that Steve?

I can do 6.79% but there is a $600 application fee. I guess the difference comes down to the loan amount whether this small rate difference is worth it.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Chan$,

You suggested paying out the bad debt.

Whilst this is good general advice you need to be careful.

Remember that lenders need to see genuine savings. If you encourage people to pay out their bad debt it may then be that they have no savings left and this will put them back 6 months whilst they recreate that genuine 6 months savings pattern.

After they get professional advice we can then see if they have enough to do this. Some people have enough income to service all the debts and a mortgage where as they may not have the deposit saved to buy a home and pay out the debts.

I hope you can understand my reasoning. Please let me know if I can explain it further.

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Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Derek is spot on.

I think you believe that you need to pay out your property and then save for the deposit on the next one.

If you use an offset or redraw make sure that the funds go against your home loan. Also borrow 100%+ of your IP to maximise deductible interest and use your savings to offset the home loan.

You are in a great position to build a portfolio of investments if you feel that is the right path for you.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

None of it.

The interest on the loan is a deduction.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Don’t pay out all of your debts yet!!!

Wait until you have a plan and know whether deposit or increased income is more important. Talk to a broker and ask him/her to run some figures for you.

Cheers,

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

If you have never lived in it and it was bought after July 2000 you are still eligible for the FHOG.

See

http://www.osr.nsw.gov.au/portal/page?_pageid=33,63398&_dad=portal&_schema=OSRPTLT

Hope this helps.

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Check out Carrington in Newcastle.

It is slowly turning into an area comparable to Balmain. Newcomers love it whilst locals are blinkered by it’s working class history.

It is close to the CBD, on the harbour and most of all the announcement that much of Sydneys shipping is to be diverted to Newcastle and Wollongong will bring a lot more jobs into the area.

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Consider a NODOC loan at 65% LVR. You can refinance this when you have an income again.

Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.