Have property value in cash, offset full amount?

Hi all.
Looking to purchase a cheapy in a regional area. Have the value of the home in cash. Wondering how a loan works exactly if I put all the cash into the offset immediately and not pay interest?

Can anyone recommend a broker in Sydney who could assist with this kind of product please?

 

Borrow 80%, no LMI, offset the rest of the cash against non deductible debt such as a PPOR.

Not in sydney but I and a number of my clients use @Corey Batt and @Rolf Latham

 

DaveM hits the nail on the head - nice and simple. If you don't have any personal debt you can otherwise offset the funds, you can then offset the cash against the IP.

 

I don't actually own any other property so have no deductible debt. Would be looking to live in it myself and likely rent out a room.

 

That's easy enough, you just need a normal loan with full offset attached, interest only etc.

Speak with an investment focused broker who should be able to set this up for you easily, whilst the setup is simple - you will want to make sure the lender/product is appropriate for your longer term goals so you're not snookered at a later date from poor lender selection/focusing on the wrong factors.

 

Thanks a lot. Another question or complication rather. I've been unemployed for 3 months but start a new job next week. How soon can I get an 80% loan? Assuming I have well above the value of the loan in cash, does that matter or will take a while?

 

Might be possible to get finance after 1-2 payslips, but ideally you'd be in the new job for 3 months.

 

As Peter has said - after a payslip will be sufficient for some lenders if its permanent employment (part time or full time). If casual or needing to choose from a broader range of lenders, 3 months.

 

Why do you not want to pay cash for the house?

George Poullos @York of the forum is based in Sydneu

 

I don't intend to have this as my PPOR forever so wasn't sure if this was wise?

 

Yes it probably is wise..

Do you have a spouse?

 

No, single. I wanted to use the cash in the offset for further deposits down the track.

 

See my post on how to borrow 105% for the first purchase. Keep in mind may be difficult to do this.