Depends a bit on your future plans, ie if you want to move from your current PPOR, invest in more property or shares etc.
You have a good amount of equity now and if you wanted to buy more investment properties, switching to IO on IP1 would give you that little extra to put towards repayments...
St George can be difficult with Paperwork and the amount they need and as Rolf alerted at, their offset on an Interest Only is not a true 100% offset so if you plan to really use the offset with large sums of money it may be better looking elsewhere.
I assume one of you is borrowing in your personal name to contribute to the trust, you would need to meet the genuine savings requirement (5% over 3 months or 10% equity in another property) to keep the mortgage insurers happy. Some lenders will do at 90% as the guys said, but not in 2 weeks.
As the other guys indicate, really depends on your default details as to whether current lender (or any other) would do construction loan and how good your figures are (need the GST and CGT in there) as the bank with scrutinize these.
At least you a putting in a fair wack of your own funds so...
If you are looking for fixed, Adelaide has a 3 year rate at 6.99%, their variable is 6.24%. They do have a monthly fee and the est fee is $695.
Really depends on what your main requirements are?
Homeside do only count 60% on a new investment purchase but there are other lenders that will let you use upto 80% of the rental income.
do you know why the 2nd lender knocked you back?
I have referred some clients to Eunice Wallace before and they have been happy. She is based in Christchurch, her email is [email protected], mobile +64 (275) 899365
I would talk to a good property accountant as the best way to do this will depend on many things including how the existing PPOR is held, your PPOR exemption and a range of items on your investment properties.
It's probably not what you wanted but spending a few dollars now could save you...