Thanks again Terryw;I couldn't get 0.8% discount but I did get 0.7% on both the LOC and we aren't borrowing very much so every little bit counts.Newdawn

Sorry to be ignorant Terryw but I still don't understand. If I borrow from loan 2 now when it is still our current home and loan 2 also has all the costs for IP1 coming out of it (which would be eligable for tax deduction now), won't that be mixing things between IP1 and future IP2 (now PPOR)? Is this something accountants can easily deal with?I…[Read more]

Hey Terryw;Just re-reading what we said. When you said "Since your current home is going to be an investment you could borrow from Loan 2 now for paying all associated costs. Later on when you do rent it the interest should be deductible as you have incurred the interest in money borrowed for the property that is being rented..". Did you mean the…[Read more]

Cheers Terryw.Did PM CJC but no reply.Just a follow up for other forum users regarding NAB v's ANZ multiloan products. We spoke at length to NAB. We were advised that the 6.44% was only an intro rate and that loan also required a $10/mth fee. Best they could do otherwise, was 6.64% only marginally better than the 6.71% ANZ is offering us (after…[Read more]

Thanks Terryw;This has been a great help. We will seek advise and then put this in place.It's all very exciting. We appreciate your time and consideration. Have also decided to put title and loan in hubbys name.Hope this info helps a few others out there too.Good journey!

Thanks again Terryw;So put simply. Am I on the right track below.Loan 1: IO with redraw and offset for current PPOR. Put all wages and spare cash in offset now to reduce interest and so can use in future for next PPOR, when current PPOR becomes future IP.Loan 2: LOC secured on PPOR. Part of equity from PPOR. Use for deposit to buy IP1 plus all…[Read more]

“You would also want to slowly increase this loan by paying the interest on it by borrowing from LOC1. Place all spare cash into the offset account….” Terryw

I don’t really understand how this works?

Thanks Terryw;

I appreciate your experience and advise.
Just a few questions.

Loan C: Why LOC as opposed to IO with offset? I am under the impression that LOC has higher interest rate and the same flexibility can be achieved with IO with offset.

Why do you suggest two LOC loans? Is it to keep separate expenses/ deposit / etc for IP1 – interest…[Read more]

Thanks Richard;Yes, I was only dreaming of interest free ha ha. I meant interest only.I think your right – neither I or the bank really knows. We have spoken to three mortgage brokers and they don't seem to know either?Yes, it's hard to get our heads around it all. We would still appreciate any general advise or where best to get advise.