I just spoke to a lender about borrowing for an IP. I have a fair bit of equity available from my PPOR but it is financed with a homestart loan. They told me I would have to refinance with another lender to access the equity. Is this correct?
Hi Mike,
This sounds a bit interesting. Can you please give a little more info about your homestart loan – amount owing vs estimated worth of property, approx interest rate you are paying, etc?
If you don’t want to talk online, drop me a note on email below, but online is probably better so all the other folk can chip in!
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Mel
[email protected]
0438 548 235Property is worth about $160,000
Owe about $40,000
Interest rate is 6.72%Are you really in Afghanistan?
This is an easy one to refinance but wouldn’t bother until you are ready to buy again.
My reasoning is that it is such a small loan it isn’t worth the fees to save a little interest.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985What I would do is combine the $40,000 with the IP loan but I’m still not shure whether there is some ruling in the homestart contract that I cant use the equity.
I doubt that they can stop you using your equity. For example; what if you went and got a second mortgage with another bank, they can’t stop that.
I would,Refinance and draw your equity out for the deposit etc… for your IP. But like Mortgage Hunter said when your ready to buy.
There are better rates etc.. than your current loan. So refinance, so your properties are on better rates anyway.
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