interest free house deposit..

Viewing 4 posts - 1 through 4 (of 4 total)

waydo77
Participant
@waydo77
Join Date: 2011
Post Count: 155
March 21, 2015 - 11:44 pm
hi all
i have a few queries..
recently a workmate was telling me about holiday he went on and use a credit card for all the expenses
flights etc.
once he got back before the interest started happening on the credit card he transferred to another credit card that had 12 months interest free on all balance transfers then once it was close to up he then transfer again to anOther different credit card that had another interest free period.
Made me wonder if it would be possible to do this with an investment property, and simply take out a personal loan for the deposit of the property then transfer the balance of the personal loan to a credit card that has an interest free period of 12 months or more.
Does this at all Sound possible?
Cheers. .
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
March 22, 2015 - 12:10 am
Yep all sounds doable of you can find:
1) A lender to give you a personal loan for the deposit.
2) A lender who will allow you to draw cash on a credit card to pay off the personal loan and then allow you to have an interest free period on the card.
Course after that you need to ensure you can pay off the card or substitute the security as it would become a very expensive deposit at credit card rates going forward.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
March 22, 2015 - 11:46 am
Also remember that in this process you will be trashing your credit file with further activity, which some lenders and their credit scoring systems can look at very poorly.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone Me
Investment Focused Finance Strategist - servicing Australia-wide
waydo77
Participant
@waydo77
Join Date: 2011
Post Count: 155
March 23, 2015 - 11:05 pm
Richard Taylor wrote:
Yep all sounds doable of you can find:
1) A lender to give you a personal loan for the deposit.
2) A lender who will allow you to draw cash on a credit card to pay off the personal loan and then allow you to have an interest free period on the card.
Course after that you need to ensure you can pay off the card or substitute the security as it would become a very expensive deposit at credit card rates going forward.
Cheers
Yours in Finance
Richard, I did a little research and found the credit cards that offer the interest free period (up to 18months) must be a balance transfer as such. So you can transfer either a personal loan or another credit card balance directly to the interest free card if approved. However even though the card is interest free and cash advances on it would be at the full 20%+ interest.
Cory, How exactly do lenders view credit hits when they check your credit file? e.g 3 hits a year too many etc?
I realise evn though paying the card with no interest would jeopardise borrowing capacity however as the banks normally take the full limit into account at the full interest rate payment yes?