Hi Tom,

If I was you I would focus on choosing subjects you enjoy during high school. You will be confronted with many distractions in your last couple of years (many alcohol related) and your motivation to focus on studies will be challenged. If you are enjoying school you will be more inclined to devote time and effort and this should manifest…[Read more]

So I found out my partner's friend from school is a successful mortgage broker and got some great advice.

NAB came to the table with a very competitive rate of 4.92% for our PPOR loan (previously 5.08%) and the Investment loan (variable IO)

Structured as follows:

Loan 1: $310,000 (PPOR, P&I)
Loan 2: $50,000 (Deposit, IO)
Loan 3: $297,000…[Read more]

Thanks guys.

I will follow up KLM. Cheers.

TheNewGuy wrote:
Hi Paul. Good luck, and let us know how you go. I'm definitely interested to know what happens, particularly if you stay with the NAB.

Also, the $395 fee is per annum, so if you do stay make sure you get it put on a tax deductible account.

Oh my mistake. Excellent advice. Cheers I will let you know how it goes

JacM…[Read more]

Yeah I may have to swallow my pride and seek help. Thanks for the interest guys!

The more I think about this, the more I am getting confused. Let me lay out the figures…

PPOR Value: $400,000
PPOR loan balance: $310,000
Equity @ 90% of PPOR value:  $50,000

Pre approved loan: $350,000
LMI: $6800

Can someone make sense of this?

The NewGuy:

1. agreed
2.Now my understanding from the meeting was that I don't pay interest on the equity. Why would I pay interest on money that is essentially already mine (i.e. not borrowed)? The way I see it is that the equity is already mine; I am using it to pay a deposit and cover fees on another loan.

Yes we are paying 5.08%

The $395…[Read more]

Thanks everyone for the advice. The key things that were discussed in the meeting:

1. Regarding LMI, I was told I am not paying the full amount. I am only 'topping up' the existing LMI payment to cover the additional borrowings. Does this add up? does $6800 seem right?
2. I was reassured that it was not cross-collateralised. The IP loan would be…[Read more]

Her explanation on the LMI is that the original LMI payment covered the original loan and I will need to pay additional LMI to cover the increase in borrowing brought on by the new loan.

Thoughts?

I asked if this was cross collateralising and she informed me it wasn't. She said they are two separate loans and the original loan will not be affected. The bank is NAB.

Ok so went and talked to the bank. Some interesting outcomes:

1. The bank is willing to release 100% of the equity.
2. There was no credit on LMI (I will be charged $6800 on a $350,000 loan)
3. There will only be two loans. The release of equity is not treated as a loan.

Thoughts?? I was pre approved for $350,000.

Awesome thanks for your help

Are you coming down for business or pleasure Richard?

Jamie M wrote:
Hi Paul

PPOR
Loan 1: Your current PPOR loan
Loan 2: Equity release against PPOR to cover deposit/costs on IP (can be an IO loan or LOC)

IP
Loan 3: Remaining balance for IP

I am picturing something like:

Loan 1: Existing loan on PPOR (variable P&I w/ 100% offset)
Loan 2: Equity release against PPOR (circa $40,000 interest…[Read more]

Qlds007 wrote:
I would also ensure your Banker structures the loan in such a manner to enable you to buy another IP when you want.

There are a couple of products that might let you have your cake and eat it at the same time.

Cheers

Yours in Finance

Would the structure suggested by Jamie M achieve this?

Hi Shahin,

Yes we did pay LMI for the PPOR. Does this have implications?

The valuation was a bank ordered valuation.

I will have to discuss with the bank the ins and outs of LOC v Standard loan.

Hi Sampson,

I did a similar thing with Alan Fox from Propertunity. He was very helpful however he is very time-poor so you may struggle to catch him. Worth a shot regardless

Thats disgraceful but you need to be on top of managing tradesman. You need to make sure 110% they know what you expect and what the scope of works is. I hope you didn't pay them until they fixed it up! 

I find it a lot easier to paint the frame (with some overstroke onto the wall) and then cut the wall in to the frame. If you do it the other way around then you are attempting to paint the frame edging (usually less than an inch wide) without overstroking onto the wall and this is bloody hard.

Call your local Council and ask if it would be permissible.