First ppor loan!

Discussion in 'Loans & Mortgage Brokers' started by pippen, 3rd May, 2020.

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  1. pippen

    pippen Well-Known Member

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    Location:
    australia
    Hi all,

    Speaking with a work mate and this person is looking to get finance for their first property. (Could be an IP down the track).

    They are looking at a loan of 350k to 400k having 50k as cash in bank.

    Just wondering on best set up for them whether to fix a portion of it or simple no frills PI loan or have an offset account and put minimum down and fill up offset and if down the line 5 to 7 years they want to move to their dream home can use all offset funds and pump that into new ppor and have full deductions available on first home purchased????

    Kind regards
     
  2. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    18th Jun, 2015
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    Location:
    Perth WA
    Why not put them in touch with a broker from the forum who can give them specific advice? There's too many variables for a forum post.
     
    Terry_w likes this.
  3. Lindsay_W

    Lindsay_W Well-Known Member

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    QLD
    If it's gonna be an IP at some point in the future, In general terms, I would recommend an Interest Only loan with an Offset account, build up funds in the offset and maintain deductibility of the loan once it becomes an IP, they would need to seek their own advice re: the tax side of things.
    Is it the best for them? Hard to say without knowing their full financial situation.
    Tell 'em to jump on here and have a read/contact a broker.
     
    Primary341 and pippen like this.
  4. Morgs

    Morgs Well-Known Member Business Member

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    Limited deposit and FHB... they may want to look into the FHLDS to see if that is suitable. Some lenders still have spots.