Hi All,
This is my first post, Its mainly targeted for the Mortgage consultants but ive seen heaps of good advice given out on these forums.
Currently im investing in shares with a margin loan (variable and prepaid fixed interest) and want to know how much this will affect an application.
Im keen to know my options as i have a large fixed portion of my loan with prepaid interest, and am looking at fixing more of the loan but the fixed period would have to be for a year, During this time i might apply for a home loan, probably a 3Br to rent out the rooms to friends.
I guess the income from the shares would be added to my salary, and as they are almost paying for themselves and would only reduce the deposit i would be able to form.
Any other options ? (assuming the loan cant be cancelled early).
Thanks.
ScorgeScorge,
Your loan repayments on your margin lending will reduce your serviceability.
Depending on all the figures this may have no affect or it may be a deal breaker.
You should contact a broker and let him know your plans and figures and see how it pans out.
I have a margin loan and mortgages so it is certainly doable.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The problem with margin loans is that when applying for a home loan, they usually look at the limit even if you are nowhere near it. If you are not using it all and have no intetntion of doing so in the near future, it might be wise to reduce the limit if serviceability is an issue.
Regarding the income on the shares, these will only be considered if you have been receiving them for a decent period and declared the income in your tax returns. Low doc is always an option though.
TMA
http://www.email4money.info
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