All Topics / Help Needed! / Line of Credit v Variable Mortgage

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  • Profile photo of ryan57ryan57
    Member
    @ryan57
    Join Date: 2010
    Post Count: 3
    October 31, 2011 - 2:33 am

    Hello

    Currently re-financing the IP to release equity to fund the deposit on a PPOR.

    I thought the best method would be to get a LOC. But my mortgage broker is saying the LOC Int % is higher than a standard Var Mtg and I would be better off just getting the Var Mtg (IO and as a 2nd loan for tax purposes).

    Is he correct? If so what's the point/benefit of getting a LOC and paying a higher Int rate (if not tax deductable anyway)?

    Thanks
    Ryan

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    October 31, 2011 - 3:09 am

    He's probably right. Go for an IO loan to access the equity – separate split of course.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    October 31, 2011 - 1:01 pm

    Yep I'd agree with your broker on that one.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 3 posts - 1 through 3 (of 3 total)

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