Best loan set up for PPOR

Discussion in 'Loans & Mortgage Brokers' started by Sharkish, 2nd Jan, 2022.

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  1. Sharkish

    Sharkish Member

    Joined:
    31st Jul, 2020
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    Location:
    Sydney
    Hi all.

    After months and months of searching, I've finally found a property for myself and my partner, we had just submitted out offer and placed a small 0.25% deposit.

    Property is: $1,150,000.
    We will have saved up cash enough for the 20% deposit = $230,000.

    However, this home is a fixer-upper. It is fine to live in, but does require some renovations.

    Due to my occupation, I am able to do a loan for 90% without LMI, so was thinking to borrow more, which will allow more cash to be used for renovations (approx $100k).

    Now, since this is going to be out PPOR, and we are looking to reno.

    Would it be better to fully fix the home loan interest rate, or have maybe 75%/25% mixed fixed/variable.

    If there is more information required to decide, please let me know.

    Thank you in advance.
     
  2. Terry_w

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

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    Wayne53 and Sharkish like this.
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Not enough info for a variety of reasons

    If you are looking to pay the home off more quickly using an Active Debt recycle capacity, the amount and maturity of any fixed rates needs to be considered.

    Assuming you borrow 90 %, what is your capacity to save per month after you have moved in ?

    ta
    rolf
     
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    How much to fix and how much to variable is more then just a percentage split as theres a few variables that should be spoken about with youre doing this kind of structure.

    Did you have this convo with your banker/broker?
     
  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Are you a medico or is it another profession (Accountant, Solicitor, Celebrity, etc)?

    If you are a medico have you determined if you can borrow 105%?