Thanks Richard.You initially advised me to switch the loan to an interest only loan with 100% offset account asap to preserve the dedcutibility of the interest going forward. I understand thisand I have explored this in this forum and read Jamie's article as referred to in the…[Read more]

Thanks again Richard and Terryw. I feel like I have read many topics in finance section but still lots to learn!OK, so from your advice, I understand now that as long as I can take a LOC as a secound loan to cover 20% amount of IP price and other admin/legal costs to cover from Building Society, the first IP purchase can go ahead. I believe we…[Read more]

I was just advised from our broker that I can only take a LOC from current Building Society as they hold our mortgage.I would like a second opinion. Is that correct that we cannot apply for a LOC from other lenders than current B.S.?Also, when B.S. during LOC application process, do B.S. consider current offset a/c balance into consideration?I…[Read more]

karlm63 wrote:
For your every day expenses do you use a credit card ?

Hi karlmYes, we pay all day expenses using credit card and pay off from offset account.We keep all extra cash in our offset account.The reason we refinanced from St G LOC to building society's home loan was we didn't utilise LOC account as the loan was only for our PPOR.and…[Read more]

karlm63 wrote:
Hi SkippyzFor your every day expenses do you use a credit card ?

Hi karlmYes, we pay all day expenses using credit card and pay off from offset account.We keep all extra cash in our offset account.The reason we refinanced from St G LOC to building society's home loan was we didn't utilise LOC account as loan was only for our…[Read more]

Thanks Richard and Terryw for your advice and comments.Equity loan sounds like the way to go. I will further talk to our broker.For this time, we only need 20% of  aquisition cost plus legal fees from equity loan. We prefer not to pay LMI.Kind regards,Skippyz