With the odd exception most lenders will want something from a Financial Planner or a Stat Dec to advise where the funds could be spent.

When we arrange a loan even on a Line of Credit we normally place a copy of our Statement of advice in with the loan submission to advice where we have suggested they invest the funds. If of course the client decides to invest himself elsewhere that is upto him as we dont charge for the S o A where we are arranging the home loan. 

Hi Steve

Yes 16 in line would be consider a Com deal especially if they were buy, renovate and onsell type of acqusition.

Still can be done at competitive rates.

Hi Stately

Unless it is more serviceability based there would no need to sell either property.

Lenders wont care that you have sold an asset in order to use the funds as deposit for another property.

With regards to finance more of a matter of coming back in a 18 months time + and looking at an application as lenders wont hold a pre-approval over for that lenght of time.

Just make sure that the property is likely to value up to the purchase price as OTP properties can be notorios at not doing do.

Depending on the style of units and location you might get 65% on a standalone security.

Couple of specialised lenders out there in this market but would depend on a few factors.

Suggest Hertiage BS depending on where you are based.

Paddy

Dont entirely agree with your anology

There really is no difference between LOE or LOCF except that with LOE you are moving closer to the line of creating more debt than wealth.

I think there is a big difference.

With LOCF your rents exceed your interest repayment, rates, insurance and all other imaginable costs and still add to the bottom line of income yet with LOE you are merely bring forward the day  you run out of equity and are back to square 1.

For me i would never take the LOE position unless i had actuarily calculated the amount of debt i was going to draw over my life expectancy and assuming i could still somehow access the equity by borrowing when i dont have an income.

There is no point in giving up work at aged 40 drawing on your equity, then at 50 having to go back to work to support the interest on the debt that has now increased and you have nothing left to draw. You start selling off property to pay down debt that is increasing at an alarming rate.

Save paperwork and lock you in so it is hard to leave.

Agree with Terry Interest is dedcutible on the basis that you invested in the expectation that you will receive a Capital Gain.

NWS is a particular stock that is very popular as a Margin loan share but rarily pays a dividend being a growth stock.

Certainly anyone borrowing to invest in such a share would expect the interest to be Tax deductible.

To throw in my 6 pence worth i actually phoned the local branch of each of the big 5 banks this morning to be told:

1) 4 out of the 5 told me that a formal application would still be required and I would need to come in with my income.
     Even as a customer i would need to verify income esepcially being self employed or employed and my pay went into a  
    difference banks account.

    Only 1 of the Banks told me that as an existing customer i could be approved for a given amount on the spot.

2) Course Positive point number 2 only works now there is no mortgage stamp duty in most states but is it really a selling point. I agree with Terry if i had C/C loans over my 40 properties i think my Accountant would have a fit.

3) When with most lenders you have to lodge a new application merely to roll over again from the expiry of an interest only period to a further interest only period and that takes time i cannot see any difficulty in having to make 5 separate loan applications.

Maybe time consuming but this is also a customer service orientated industry. We dont always get paid for the level of work we do.

All in all whilst i agree there are times (slim that they maybe) that you would want to C/C your loans in the main i prefer to keep mine and a clients separate.