Buyers broker….I don’t think they exist. It would mean more expense for you.

How about you ask a broker to disclose his commission. There isn’t really a great deal of variation in the payments for an average loan.

I think most brokers will genuinely find the deal that suits what you ask for. Our businesses are built on referral and that is something I would never compromise – bad referrals travel way faster than good ones! I am sure I speak for most of the brokers who post here.

I hope you find what you want.

Cheers,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

Some points.

PPOR = Principal Place of Residence + Your home.

IO vs P&I… I would still consider IO for the first 5 years to maximise cashflow. After this period you should have equity to tap and higher rent available. But it really is your choice.

Lump sums…you can pay lump sums into most products with no penalties. Certainly cash should be stored in your PPOR pref in an offset account. What if the banks don’t like it….who cares?[]

Cheers folks,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

HGWells,

I will try to be objective but remember I am a broker.

If you are really happy with your current arrangement then I would suggest that you don’t need a broker, unless…

…you want to really know that you are on the best deal out there. In that case most brokers will just be happy to confirm this for you without trying to talk you into a new situation.

Most brokers don’t charge you anything for their service. They are paid a fee by the lender for bringing in business. We all use around 20-30 lenders who pay pretty similar fees but there are some brokers who may recommend a lender based on what they pay. So use a broker with a reputation you can trust or referred by someone you trust.

Cheers,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

There are plenty of brokers in here who would do the best they can for you.

Please feel free to email one or more of us with what you need and see what we can do for you.

Cheers,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

Take my advice with a grain of salt as I really don’t know you well enough.

One idea is to buy the home using all of your money.

Pay down the home as fast as you can and in the meantime find your other investment.

Draw money from the home loan to invest. Use a split loian to clearly see the new debt as a seperate entity.

This means that your equity is where it should be against your home and your investments carry as much debt as possible. Assuming these investments pay a return then the interest will be a tax deduction.

I recommend you seek independent advice.

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

<My pleasure guys.

I Live to Give []

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

NO NO NO

It is the purpose of the loan that makes it deductable not the security used. You draw the funds to buy a home then no deductions allowed.

Depending on your time frame I would recommend some different strategies.

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

I just spoke to a fellow being audited and he was asked for proof covering a three month period.

Scott,

You are quite correct. If a partner in a home purchase has used the FHOG or owned a home before then you cannot get it. In addition if you then reside in that property you will never get it either.

There are ways around this. I have mainstream lenders who will allow the first home owner to be on the title and the loan with a second applicant being a co borrower. This satisfies the OSR legislation. I commonly do this where a parent helps a child whose income isn’t high enough to qualify for the loan, whereas if the parent was on title the FHOG would be forfeited.

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

Well the FHOG is designed ta assist to purchase your home.

I understand that whilst there is no minimum period you must live in the property the OSR is actively auditing people and the they are asking for proof that the property was your home for a three month period.

So I hear on the grapevine,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985

RT,

In answer to your questions on tax effectiveness of IO.

An IO loan is more tax effective than a P&I loan as it is only the interest component that is tax deductable.

One idea is to set up an IO facility with an offset account where you might credit the principal payments. This will me a method of saving and you can readily access this when you need a deposit for the next property.

This will have the effect of earning you approximately 6% on the savings although it will be virtually taxed.

There are other ways to invest this money for a higher return however you need to be comfortable with the idea that higher return = higher risk. Investing in the offset is almost risk free. The only risk is that of missing out on a higher performing investment.

Cheers,

Simon Macks
Mortgage Hunter
[email protected]
0425 228 985