Alternatively email your Mortgage Broker and he will do the calculations for you as well as answer and other questions you might have.

Yes GoM only 3 years too late.

Being in the Uk on holiday must admit i havent seen much detail but would be interested to read up on it when i get back.

Tend to disagree for the right client.

Currently in the UK on holiday and already had 2 approved this week alone.

Because it will limit your future borrowings.

Mortgage insurers like lenders have max exposure levels.

Problem is you cant go the 4 or 5th mortgage insurer once you have max out with another because there are only 2 of them out there. Unlike lenders where you can switch around and try another lender.

As Terry mentioned it is horses for courses but i wouldnt touch a lender like them. 
Guess i can think of all the securitised players who are no longer with us. Promised the world yet didnt last the distance.

Reminds me of a few horses i have had a quid or two on.

If they were that good why dont they have a bigger market share.

Fact of being in the UK may have slowed me down.

Credit policy is the biggest drain. Certainly they dont want to discuss a deal unlike a lot of other lenders and everything is either black or white.

The way they calculate expenses when it comes to external loans, negative gearing policy list goes on and on.

roy

Regretfully whilst the loans could be separate and represent 50% of the total amount borrowed (even with a couple of lenders have your individual names on the statements) you would both be jointly and severably liable for the entire debt.

Hi Badger

Wow even from the cold wet UK i would suggest you hold right there.

Couple of potential issues i can see with your strategy:

1) Certainly dont pump or even trickle money into the mortgage itself rather establish an interest only loan with a 100% offset account and place any surplus funds into the savings account. Then when it comes to your own place you can use the funds in the 100% offset account as a deposit and keep things nice and clean.

2) Whilst they are still your parents you still need to bear in mind that you need to ensure the rent is considered "market rent" rather than a subsidised rent. You will be taxed based on the fact that it is a market rent.  Also structure will be important as If the property is likely to be neutral or positively geared you might want to consider buying in a Discretionary Family Trust structure which will give you a combination of Asset protection as well as flexibility when it comes to income distribution.

All in all not too difficult but just make sure your Broker is experienced in investing and can structure it correctly.

What exactly are you looking for and at what LVR.

Most lenders wont allow unlimited cash out without a genuine reason and evidence i.e ANZ will want a Stat Dec stating you under stand the risks of investing in shares etc if you say the funds are for managed funds and also a copy of the Statement of Advice from your financial planner.

NAB will want to control the movement of funds by drawing the cheque themselves.

Each lender has a different guideline when it comes to open lines of credit. Also interest rates vary depending on the size of the facility. Horses for course on that one.

Hi fredo

Well i guess i have to disagree but then i would wouldnt I.

I decent broker isnt just a form filler and a pusher of paperwork he / she is someone that has a thorough understanding of what your requirements are knows where to go and achieve this and works with you through the deal.

In addition, he / she knows how to structure a loan correctly which most Bank managers have No idea and why should they as cross collateralising securities benefits the lender anyway. Half the job is getting a clients deal set at an appropriate product at the right (not necesarily cheapest) rate and with a lender that can process efficient not only its new clients but also it post clients when it comes to customer service.

Whilst the odd lender used to have a different turnaround time for the Broker V Branch network most have streamlined this and the loan ends up in the same credit assessment queue. Admitedly i have seen the odd deal where the local Branch manager has fudged the figures to get a deal through their system which a Broker is unable to do but in most cases i would say the deal done through a component Broker will have just more chance of long term success for the client than dealing directly with the Bank.

Lastly interesting to note that most of the Banks have pulled their direct online channels such as Anz with One Direct and CBA with Homepath so any client merely chasing the lowest interest rate quoted at the time of application will find these avenues not open to them anymore.

So much for Bank brotherly love.

Your Broker should be able to get these waived for you.