100% finance without property as security

Discussion in 'Loans & Mortgage Brokers' started by bonanzawealth, 3rd Oct, 2015.

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  1. bonanzawealth

    bonanzawealth Well-Known Member

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    23rd Jun, 2015
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    Location:
    Sydney NSW
    Generally when people say 100% finance to buy IP, it means 20% equity release from other property and 80% from the new IP. This will be beneficial from tax deduction point of view because we're borrowing to purchase income producing asset.

    What if I don't have another property that can do the 20% equity release bit but have liquid cash. Can I put this 20% cash in term deposit and borrow it out so I still can enjoy the tax benefit? if yes, what's the name of the loan product? is it LOC?
     
    bonanzawealth, 3rd Oct, 2015
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes. same loan products - just diffferent security.
     
    Terry_w, 3rd Oct, 2015
    #2
  3. Perthguy

    Perthguy Well-Known Member

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    22nd Jun, 2015
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    11,767
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    Perth
    Hi bonanzawealth. I have written up some examples here:

    https://propertychat.com.au/community/threads/cash-secured-loan.4092/
     
    Perthguy, 3rd Oct, 2015
    #3
    bonanzawealth likes this.