What is the right loan structure?

Discussion in 'Loans & Mortgage Brokers' started by Prop_invest, 4th Apr, 2019.

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  1. Prop_invest

    Prop_invest Well-Known Member

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    Hi all,

    I am applying for a loan to buy my first home (PROP) and thinking of adding more IPs to my portfolio in the future.

    What are the main factors I should get it right in the loan to be able to do the investments later? What is the right loan structure? Is it something general that you can advise on or it is case by case?

    Thanks for your help
     
    Prop_invest, 4th Apr, 2019
    #1
  2. Terry_w

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

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    first consider the ownership structure.
    Then the loan

    Generally
    Set the loan up in a way so that you can maximise interest rate savings in the future when you debt recycle.
     
    Terry_w, 4th Apr, 2019
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  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Flexibility to be able to change the structure of the loan down the track to enable you to debt recycle in future.

    Very important where you are paying Lenders Mortgage Insurance, as you cannot move lenders as easily, without loosing the LMI or repaying it, unless the value of your property grew significantly.
     
    Property Twins, 4th Apr, 2019
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    whats the right car for my family ?

    a hard one without knowing any of the data

    ta
    rolf
     
    Rolf Latham, 4th Apr, 2019
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  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    There is no one size fits all solution - it's going to depend on your plans for this property long term and a heap of other things.

    Get some specific advice from a broker.
     
    Jess Peletier, 4th Apr, 2019
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  6. Prop_invest

    Prop_invest Well-Known Member

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    Thank you all for your comments.
     
    Prop_invest, 5th Apr, 2019
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  7. AlbertWT

    AlbertWT Well-Known Member

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    Hi @Terry,

    Care to share the example?
     
    AlbertWT, 5th Apr, 2019
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  8. Terry_w

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

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    Read my tax tips and legal tips and strategies for plenty
     
    Terry_w, 5th Apr, 2019
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  9. AlbertWT

    AlbertWT Well-Known Member

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    You are so awesome :)

    Thanks, mate, I didn't realize that's part of your sig.
     
    AlbertWT, 5th Apr, 2019
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  10. Terry_w

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

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    See also
    Terryw’s Ideal Loan Structure Terryw’s Ideal Loan Structure
    Keep in mind it is an old piece of writing now and I would probably make some slight adjustments today too.
     
    Terry_w, 5th Apr, 2019
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  11. AlbertWT

    AlbertWT Well-Known Member

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    That's cool, thanks for providing such a good information @Terry_w
     
    AlbertWT, 6th Apr, 2019
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