All Topics / Finance / Overseas willing to lend at 2-3% but short loan term

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  • Profile photo of coashcoash
    Participant
    @coash
    Join Date: 2011
    Post Count: 2
    November 21, 2011 - 12:44 am

    My uncle’s friend in asia with their 0% interest rates say they are happy to lend about 3% but probably will expect the loan back in 5-10 years.

    This I calculated won’t be enough for a full mortgage loan, as I had planned to use the bank IO with offset for about 400k loan. If I borrow the same amount for that loan I won’t be able to make the repayments to the friend.

    Is this offer going to help me? Is it any use borrowing a partial amount?
    This is going to be for investment, so I assume won’t be as useful as for PPOR P&I

    Thanks for all help

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 22, 2011 - 9:39 am

    If you had a $500,000 loan and borrowed $400,000 off your friend and placed it in the offset and paid him 3% then:
    $100,000 at 7%
    $400,000 at 3%
    = better off for you.

    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

Viewing 2 posts - 1 through 2 (of 2 total)

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