It might be an idea to get the 90% LVRs while you still can. As you become bigger with more properties, it will be harder to get higher LVR loans.

Another thing to think about maybe??

Terryw
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Sooshie

Why are the interest rates different?

Terryw
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Hi Ben

You could refinance now, but beware of exit fees and Application fees for the new loans. If you just want to use the extra equity you could just approach your current bank asking for an increase. Also beware that the bank valuation may not come in as high as you had hoped.

What was the LVR when you purchased? You can generally only refinance to 90% of the value (tho one lender will do 95% -with slightly higher rates). How much you can get out will depend on serviceability as well.

Are the properties x-collaterlised? If not you could refinace one at a time?

what interest rate are you paying now?

Terryw
(Mortgage Broker)

Terryw
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Does your solicitor want you to sell your current house to a company? or the new house to be purchased by the company?

I would avoid using a company in either situation beacuse of the CGT issues. A 50% discount could be a lot of money.

If buying a new house, I would suggest just buying it thru a trust. This way when you sell it you can get the 50% discount and then diburse the capital gain as you please (between you, spouse, children, grandparents, company etc).

If referring to your current house, I would just leave as it is. Stamp duty etc may make it not worth it. Then if you move back into in future you will have to pay rent to your company or trust.

Yes companies must pay stamp duty and I beleive that it is the same rate as for individuals.

ps. I don’t know what the hell i am talking about!

Terryw
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Gerard

With most Low Doc loans you still have to list your income, but they don’t verify that income. You still must qualify. ie your income must be high enough to service the loan.

Some banks require an ABN for 2 years as proof that you are self employed. And they check the ABN on the ATO web site to see when it was issued.

Others require that you are self employed but don’t ask for proof. Others accept PAYG as well.

The best (cheapest?) low doc loan is Suncorp. Suncorp allow low doc on all of their products at normal interest rates. So you could get a 6.07% low doc. But it pretty hard to qualify. They require that you have had an ABN for 2 years and you must already have at least $250,000 in equity which you have to prove etc.

Other lenders start around 6.55% for a 80% LVR low doc.

Hope this helps

Terryw
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Well put Nathan!

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I know someone that did the course. $15K personal loan. 2years later still has the loan which makes it hard to qualifiy for a housing loan!!!