All Topics / Finance / IO loan on PPOR??
Hi guys,
This is probably a really basic question, but I have a friend who has a loan offer for a P&I loan to build his PPOR.
He can make the repayments and the bank is happy with his serviceability, but his cashflow is a bit tight.
There isn't any problem usually with requesting for an IO period on the loan for, say, the first 3-5 years?
I've done this with a few of my IP's, but I wanted to make sure there were different rules for PPORs.Thanks,
No problems. I chose to go Io on my PPOR with an offset account attached.
Best structure in my situation.
Hi Simon,
Thanks for that.
Yes, I think having an offset would be a great addition.
Can the offset have a redraw facility?
Or does it depend on the lender?happyjack72 wrote:Hi Simon,Thanks for that.
Yes, I think having an offset would be a great addition.
Can the offset have a redraw facility?
Or does it depend on the lender?Off set is just an account that you store money in.
You can deposit and draw as often as you want for no cost.
Most loans with an offset attached have a redraw as well however why use the redraw when you have the offset
which bank/lenders offer a competitive interest rate, as well as a 100% offset loan?
CJ
Most of the major banks offer good rates and 100% offsets on the prof packages.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
CJ, depending on loan size, a few good ones to look at:
Bankwest – 7.35% with 100% offset (7.30% for > $1m)
ANZ One – 7.37% with 100% offset
Westpac – 7.37% with 100% offsetAlso, limited lenders allow 100% offset on a fixed rate, 7.35% 3yrs, which interestingly enough also has a redraw facility (not common with fixed rates)
Hope this helps.
Rgds,
RobRob
Anz Bank offer 100% offset on their 1 Year fixed rate which is unusual and there are a couple of major lenders that offer fixed rates with unlimited repayments and 100% offset.
Best of all worlds.
Richard Taylor | Australia's leading private lender
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