As Darren has mentioned a little more information first and we maybe able to assist.

Hi Intouch

First welcome to the forum and I hope you enjoy your time with us.

When accessing equity in your property you need to ensure that you structure the loan correctly to avoid any issues down the track. There is no reason why the lender will require mortgage protection although one or two do try and encourage you to take out such a policy as of course in increases their commission coffers.

There are a couple of ways in which we structure loans for clients doing what you are trying to achieve but either way flexibility is key and also it is essential that you protect both your PPOR and yourself over the Bank.

Your Mortgage Broker should be able to give you some solutions to achieve a balance.

Hi Marcust

Yes taking out a LOC against the PPOR is the desired structure. Sorry your post didnt make that very clear.

For the next IP I personally would either increase the existing LOC or take out a new LOC for the new deposit and costs.
Then take out the standalone loan secured against the new IP.

I assume you are employed and not self employed. If so have you had a QS report done on the property ?
How old was the property and did it have modern fixtures and fittings internally. 

Are you currently waiting until the end of the Tax year to lodge any claim for Tax variation ?

Was going to say i am suprised the Bank manager didnt suggest the Tax variation but then on the other hand.

Hi Marcust

Firstly welcome to the forum and I hope you enjoy your time with us.

You mention words like redraw which gets me nervous before we start as loan structure is parramount when it comes to ensuring that you can keep moving forward. I am also concerned that you borrowed 100% + costs on your first IP and assume that you offered your PPOR as additional security making tha loans cross collateralised.

Certainly from a servicing point of view i believe that you can show sufficient income to support a loan however getting is set correctly it very important as i have mentioned and it might need a little untangling.

I also assume that you are having your Tax coding adjusted each pay period to allow for the anticpated cash and non cash deductions to maximise your cash flow.

Probably time to seek some good independant advice from an investment related mortgage broker.

Financed 101 properties in Beenleigh and Eagleby over the last 12 years or so and can remember when you could buy a nice house in Beenleigh for 65K. Oh those were the good old days.

If she has any address in mind and she wants a Residex report on the particular property be happy to rustle up one for her.
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Depending on the numbers you may even want to consider selling the property into Trust and borrowing 100% of the valuation.

This way the entire interest on the new investment loan becomes Tax deductible and the balance less the amount currently owing under the current mortgage can be used as deposit on your new PPOR.

Of course there are a couple of consideration including your marginal Tax rates, the current loan amount and valuation as well as the potential Land Tax.

In saying all of this we have done this for dozens of clients over the years and it can work out very effectively.

Anything can be done but as wealth mentioned question is why would you.

Considerations include Stamp Duty, Land tax, loss of CGT exemption etc etc.

To save a dollar here or there may end up costing you a lot in the first place.

Simple reason they concentrate on units/townhouses etc and not freestanding dwelling is that the developers who pay them a nice fat commission (Trust me they have market over 100 of my properties over the last 13 years) will not do so on a single dwelling house.

Also ask yourself why the yields tend to be lower, it wouldnt be that the purchase prices are inflated.

As a developer and also financier I see many valuations each week and know as a fact that many of the larger valuers simply will not value up to purchase price hence the reason why Club Loans suggest you cross collateralise securities and dont offer clients a copy of the valuation.

Ask Kevin Young or Sampe whatever name he is using these days when you meet him.

Hi Dave

Firstly welcome to the forum and i hope you will enjoy your time with us.

Like you i am a fellow Pom (Just returned yesterday from 5 weeks back there).

Dont listen to your work mates as the average Aussie never purchases more than his own PPOR and even those who take the IP step normally only ever buy the 1. I arrived in 1993 and currently have a portfolio of 40 properties in SE Qld.

When i started my own finance business some 16 years ago the average Bank wouldnt look at me despite arriving with a decent deposit after getting 2 pound 40 to the dollar. thankfully being in the industry that didnt stop me and it should stop you either,

Admitedly since Steve''s book finding Private Finance especially at a high lvr has become almost impossible however dont give up and keep the dream alive.

Hope you enjoy the WA weather. The Uk was minus 2 in the South when we left on Wednesday and it is 28 degrees and sunny back here in Brissie today. Wonder why we made the move all those years ago.

Whilst in the main this true it not across the board.

There are still lenders out there that do not require BAS as long as the ABN is > 2 years and if required is registered for GST.

75% Nodoc is also available just a matter of horses for courses.