Hi Cicso I don't think you have too much to worry about. Although I definitely wouldn't go applying for anymore finance unnecessarily. As Jamie mentioned the last 12 months is the most critical. If your payment history has been conducted well on your Personal Loan and Credit Cards (no late payments or over limit) a broker could use these to…[Read more]

PFrankyX wrote:
Interesting fact, i never considered that actual value of the LMI, only the LVR and just assumed the higher the LVR% the higher the cost.

Ahh yes…….The Devil is in the detail!  Sometimes Bankers & Brokers can just be lazy…..and hence them not wanting to/not recommending spliting the loans for you (as it will mean more pa…[Read more]

PFrankyX wrote:
Ok, so using Cross Collarterisation to link both loans / properties together, the bank has a better hold on my properties if anything goes wrong. The only benefit that i can see from using this method is to limit the LMI i pay 1. PPOR – value $650k / loan $470k ($180k equity) Looking at buying property approx $350k (loan $370…[Read more]

No problems, you’re starting out, one of the best things to do is – ask lots of questions until you understand J  Yes that’s a common strategy used (paying down PPOR debt, to release equity for investment). The unfortunate downside is, by paying down your PPOR debt the property you’re currently in may not make a good investment property in the fu…[Read more]

Yep you're right paying down non deductible debt should be a priority. Not saying you shouldn't do this. It's just you want to quarantine your non deductible debt and deductible debt. So you should have seperate loans for this. If you had $50,000 cash – you'd pay this off your "home loan" and then create a seperate loan to reborrow it to use for…[Read more]

Hey FrankyI note you mention you have 180k of equity. Understand there is a difference between Equity & Usable Equity. In most cases lenders will allow you to access up to 90% (if you're happy to pay mortgage insurance) of your existing property vaule (held, not purchasing). So in your case if your PPOR is "valued" at $650,000 and your debt…[Read more]