Home Loan/Investment loan Questions

Discussion in 'Property Finance' started by catplank, 12th Jan, 2019.

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  1. catplank

    catplank New 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 Mortgage broker licenced 4 tax/legal advice 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 New 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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    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 Mortgage broker licenced 4 tax/legal advice Business Member

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    Use is oo
     
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