Best approach for my situation

Discussion in 'Loans & Mortgage Brokers' started by Hodge, 26th Jul, 2016.

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  1. Hodge

    Hodge Well-Known Member

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    Choicelend
     
    Hodge, 27th Jul, 2016
    #21
  2. Hodge

    Hodge Well-Known Member

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    Unfortunately not unencumbered.
     
    Hodge, 27th Jul, 2016
    #22
  3. sash

    sash Well-Known Member

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    Is the LOC for personal use (ie PPOR) or for the IP?

    If so...there is no concern just put the amount against LOC and drawdown as needed as there is no tax concerns issues..
     
    sash, 27th Jul, 2016
    #23
  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    If you are intending to convert said property to an IP down the track there will be, as in no interest deductions.
     
    Colin Rice, 27th Jul, 2016
    #24
  5. sash

    sash Well-Known Member

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    Remember it is an LOC...since it was PPOR converting to a IP ...you can still pull the money out of the LOC ..inform the bank you want to make an IP (ensure the loans reflects this) and voila...you can deduct interest.

    What you do with a PPOR and structuring is ok so long as it is not done after it is an IP.
     
    sash, 27th Jul, 2016
    #25
  6. Hodge

    Hodge Well-Known Member

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    The LOC is a separate spilt so can be used to fund the PPOR build. The issue will be i will have an IP loan offsetting 100% of the interest so no tax deduction on loan, and will be creating a new loan that i won't be able to claim as it will be personal use. Hope that makes sense.
     
    Hodge, 27th Jul, 2016
    #26
  7. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Best to talk to your broker before making any changes - there may be specific reasons why he has set up your loans in a certain way. Also we get paid trail commission to manage this sort of thing.
     
    Shahin_Afarin, 27th Jul, 2016
    #27
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  8. sash

    sash Well-Known Member

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    The I would look at restructuring that loan with same lender.

    You need to be crisp on what you want...probably good to talk to a broker...but you need to drive this. Be very clear on what you want.
     
    sash, 27th Jul, 2016
    #28
  9. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Thats a very good point and I make it known to all my clients that once the loan settles we are still here for you as that is why we get paid a trail - to provide ongoing service.

    Banks staff are transactional in nature (all about them, bonuses, vouchers, meeting KPIs) where a good broker is strategic (all about you and your short medium and long term goals).
     
    Colin Rice, 27th Jul, 2016
    #29
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  10. Hodge

    Hodge Well-Known Member

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    Unfortunately choicelend don't have an offset account facility so would need to refinance to another bank.

    I did go through a broker and this isn't his fault. I originally wanted the funds for an IP but a year later decided to use the money for a PPOR.
     
    Hodge, 27th Jul, 2016
    #30
  11. sash

    sash Well-Known Member

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    Some great rate products with offsets....to help you offset any cost i leaving.

    Good luck.

    Good learning here...you need to be crisp in term of future outcomes also...ultimately you are in drivers..and good on you for stepping up....
     
    sash, 27th Jul, 2016
    #31
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