Home Loan/Investment loan Questions

Discussion in 'Loans & Mortgage Brokers' started by catplank, 12th Jan, 2019.

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  1. catplank

    catplank Member

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    12th Jan, 2019
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    Victoria
    Hello All,

    My Wife and I are in the process of buying a new PPOR. Our current situation is;

    Current PPOR (will be converted to IP) - Valued at 325k, owe 170k
    New PPOR - 350k

    I would be keen to get some thoughts on some of the ways to structure the loans.

    Thanks
     
  2. Terry_w

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

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    $170k to stay as is (assuming all of this related to the purchase of the property, if not it should be split).
    $90k secured against the current house

    The rest secured against the new house - which will almost be 80%
    Make sure you get owner occ rates on the $90k and the rest

    And consider splitting the new property loan up to 5 smaller splits for debt recycling

    This is generally how you could do it, you would also need to consider IO v PI and this will come down to rates.
     
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  3. catplank

    catplank Member

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    Many thanks Terry, this is similar to how I thought it would look (always good to ask I suppose), although i did not think about having the new loan split up like that.
     
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  4. Mcube

    Mcube Well-Known Member

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    Canberra
    Hi Terry, how can 90k and the rest of the loans get an owner occupier rate if it is secured against the investment loan? Thanks.
     
  5. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    It depends on the lender, some don't allow it, some allow it only if the properties are cross-collateralised and others are fine with it.
     
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  6. Terry_w

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

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    Use is oo
     
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